Sugata Marjit & Saibal Kar, School of Economics Discussion Paper No. 423, May 2010, School of Economics, The University of Queensland. Australia.

 

Full text available as:
PDF - Requires Adobe Acrobat Reader or other PDF viewer.

Abstract

Emigration leads to finite changes in structure of production and sectors vanish because they cannot pay higher wages. Does emigration of one type of labor hurt the other non-emigrating type in this set up? We demonstrate various scenarios when real incomes of the emigrating and the non-emigrating types do not move together. This generalizes some of the existing results in the literature. In particular, emigration can lead to a drastic change in the degree of inequality depending on which of the sectors survive in the post-emigration regime.