Abstract
This paper examines the issue of skilled-unskilled wage inequality in the shortrun when varieties of producer services are traded. It is shown that, irrespective of the relative size of income share of capital, inflow of neither skilled nor unskilled labour affects skilled-unskilled wage inequality. However, an increase in (i) the level of competition in the services sector and (ii) relative price of the varieties of producer services can affect the level of wage inequality.
| Original language | English |
|---|---|
| Pages (from-to) | 600-603 |
| Number of pages | 4 |
| Journal | Economics Letters |
| Volume | 117 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2012 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 1 No Poverty -
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities
Keywords
- effect of labor mobility on
- globalisation
- labour mobility
- pay equity
- producer services
- wages
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