Skilled–unskilled wage inequality, product variety and unemployment: A static general equilibrium analysis

References

• Acemoglu , D. 1998 . Why do new technologies complement skills? Directed technicalchange and wage inequality . Quarterly Journal of Economics , 113 : 1055 – 1089 . doi: 10.1162/003355398555838
   Web of Science ®Google Scholar
• Acemoglu , D. 1999 . Changes in unemployment and wage inequality: An alternative theory and some evidence . American Economic Review , 89 : 1258 – 1278 . doi: 10.1257/aer.89.5.1259
   Web of Science ®Google Scholar
• Acemoglu , D. 2002a . Directed technical change . Review of Economic Studies , 69 : 781 – 809 . doi: 10.1111/1467-937X.00226
   Web of Science ®Google Scholar
• Acemoglu , D. 2002b . Technical change, inequality, and the labor market . Journal of Economic Literature , 40 : 7 – 72 . doi: 10.1257/jel.40.1.7
   Web of Science ®Google Scholar
• Agell , J. and Lundborg , P. 1992 . Fair wages, involuntary unemployment and tax policy in the simple general equilibrium model . Journal of Public Economics , 47 : 299 – 320 . doi: 10.1016/0047-2727(92)90031-A
   Web of Science ®Google Scholar
• Agell , J. and Lundborg , P. 1995 . Fair wages in the open economy . Economica , 62 : 325 – 351 . doi: 10.2307/2554871
   Web of Science ®Google Scholar
• Akerlof , G. and Yellen , J. 1990 . The fair wage effort hypothesis and unemployment . Quarterly Journal of Economics , 105 : 255 – 284 . doi: 10.2307/2937787
   Web of Science ®Google Scholar
• Anwar , S. 2001 . Government spending on public infrastructure, prices, production and international trade . Quarterly Review of Economics and Finance , 41 : 19 – 31 . doi: 10.1016/S1062-9769(00)00059-4
   Google Scholar
• Anwar , S. 2006a . Factor mobility and wage inequality in the presence of specialisation-based external economics . Economics Letters , 93 ( 1 ) : 88 – 93 . doi: 10.1016/j.econlet.2006.03.042
   Web of Science ®Google Scholar
• Anwar , S. 2006b . Provision of public infrastructure, foreign investment and welfare in the presence of specialisation-based external economies . Economic Modelling , 23 : 142 – 156 . doi: 10.1016/j.econmod.2005.09.003
   Web of Science ®Google Scholar
• Anwar , S. 2009 . Wage inequality, welfare and downsizing . Economics Letters , 103 : 75 – 77 . doi: 10.1016/j.econlet.2009.01.026
   Web of Science ®Google Scholar
• Anwar , S. and Rice , J. 2009 . Labour mobility and wage inequality in the presence of endogenous foreign investment . Economic Modelling , 26 ( 6 ) : 1135 – 1139 . doi: 10.1016/j.econmod.2009.04.007
   Web of Science ®Google Scholar
• Banga , R. Liberalisation and wage inequality in India . ICRIER Working Paper 156, March, ICRIER .
   Google Scholar
• Behrman , J. , Birdsall , N. and Szekely , M. Economic reform and wage differentials in Latin America . BID Working Paper 435, October, Inter-American Development Bank .
   Google Scholar
• Beladi , H. , Chaudhuri , S. and Yabuuchi , S. 2008 . Can international factor mobility reduce wage inequality in a dual economy? . Review of International Economics , 16 ( 5 ) : 893 – 903 .
   Web of Science ®Google Scholar
• Beyer , H. , Rojas , P. and Vergara , R. 1999 . Trade liberalization and wage inequality . Journal of Development Economics , 59 : 103 – 123 . doi: 10.1016/S0304-3878(99)00007-3
   Web of Science ®Google Scholar
• Borjas , G. and Ramey , V. Foreign competition, market power and wage inequality: Theory and evidence . NBER Working Paper 4556, December . Cambridge , MA
   Google Scholar
• Bound , J. and Johnson , G. 1992 . Changes in the structure of wages in the 1980s: An evaluation of alternative explanations . American Economic Review , 82 : 371 – 392 .
   PubMed Web of Science ®Google Scholar
• Chaudhuri , S. 2004 . International migration of skilled and unskilled labour, welfare and skilled–unskilled wage inequality: A simple model . Journal of Economic Integration , 19 ( 4 ) : 726 – 741 . doi: 10.11130/jei.2004.19.4.727
   Google Scholar
• Chaudhuri , S. 2008 . Wage inequality in a dual economy and international mobilityof factors: Do factor intensities always matter? . Economic Modelling , 25 : 1155 – 1164 . doi: 10.1016/j.econmod.2008.02.007
   Web of Science ®Google Scholar
• Chaudhuri , S. and Banerjee , D. 2008 . Consumption efficiency hypothesis and the HOS model: Some counterintuitive results . Research in Economics , 62 : 64 – 71 . doi: 10.1016/j.rie.2008.01.002
   Google Scholar
• Chaudhuri , S. and Banerjee , D. 2010 . Foreign capital inflow, skilled–unskilled wage inequality and unemployment of unskilled labour in a fair wage model . Economic Modelling , 27 : 477 – 486 . doi: 10.1016/j.econmod.2009.10.015
   Web of Science ®Google Scholar
• Chaudhuri , S. and Yabuuchi , S. 2007 . Economic liberalization and wage inequality in the presence of labour market imperfection . International Review of Economics and Finance , 16 : 592 – 603 .
   Google Scholar
• Chaudhuri , S. and Yabuuchi , S. 2008 . “ Foreign capital and skilled–unskilled wage inequality in a developing economy with non-traded goods ” . In Contemporary and emerging issues in trade theory and policy , Edited by: Marjit , S. and Yu , E. 225 – 250 . Bingley , , UK : Emerald Group Publishing Unit .
   Google Scholar
• Copeland , B.R. 1989 . Efficiency wages in a Ricardian model of international trade . Journal of International Economics , 27 : 221 – 244 . doi: 10.1016/0022-1996(89)90053-6
   Web of Science ®Google Scholar
• Dev , M. 2000 . Economic liberalization and employment in South Asia . Economic and Political Weekly , : 40 – 51 .
   Google Scholar
• Esquivel , G. and Lopez , J. 2003 . Technology, trade and wage inequality in Mexico before and after Nafta . Journal of Development Economics , 72 : 543 – 565 . doi: 10.1016/S0304-3878(03)00119-6
   Web of Science ®Google Scholar
• Ethier , W.J. 1982 . National and international returns to scale in the modern theory of international trade . The American Economic Review , 72 : 389 – 405 .
   Web of Science ®Google Scholar
• Fang , C. , Huang , L. and Wang , M. 2008 . Technology spillover and wage inequality . Economic Modelling , 25 : 137 – 147 . doi: 10.1016/j.econmod.2007.05.002
   Web of Science ®Google Scholar
• Feenstra , R.C. and Hanson , G.H. 1997 . Foreign direct investment and relative wages: Evidence from Mexico’s Maquiladoras . Journal of International Economics , 42 : 371 – 394 . doi: 10.1016/S0022-1996(96)01475-4
   Web of Science ®Google Scholar
• Feher , E. 1991 . Fair wages and unemployment , Vienna : Department of Economics, University of Technology .
   Google Scholar
• Glazer , A. and Ranjan , P. 2003 . Preference heterogeneity, wage inequality, and trade . Journal of International Economics , 60 : 455 – 469 . doi: 10.1016/S0022-1996(02)00054-5
   Web of Science ®Google Scholar
• Gorg , H. and E , Strobl . Relative wages, openness and skill-biased technological change . IZA Discussion Paper Series 596, October . IZA
   Google Scholar
• Green , F. , Dickerson , A. and Arbache , J. 2001 . A picture of wage inequality and the allocation of labour through a period of trade liberalization: The case of Brazil . World Development , 29 ( 11 ) : 1923 – 1939 . doi: 10.1016/S0305-750X(01)00071-7
   Web of Science ®Google Scholar
• Gupta , M.R. 2000 . Duty free zone and unemployment in fair wage model . Keio Economic Studies , 37 : 33 – 44 .
   Google Scholar
• Gupta , M.R. and Dutta , P.B. 2010a . Skilled–unskilled wage inequality, nontraded good and endogenous supply of skilled labour: A theoretical analysis . Economic Modelling , 27 : 923 – 934 . doi: 10.1016/j.econmod.2010.05.013
   Web of Science ®Google Scholar
• Gupta , M.R. and Dutta , P.B. 2010b . Skilled–unskilled wage inequality: A general equilibrium analysis . Research in Economics , 64 : 247 – 263 . doi: 10.1016/j.rie.2010.07.001
   Google Scholar
• Gupta , M.R. and Dutta , P.B. 2012 . Skilled–unskilled wage inequality and unemployment: A general equilibrium analysis . Economic Modelling , 29 : 502 – 13 . doi: 10.1016/j.econmod.2011.12.010
   Web of Science ®Google Scholar
• Gupta , M.R. and Gupta , K. 2001 . Tax policies and unemployment in a dynamic efficiency wage model . Hitotsubashi Journal of Economics , 42 : 65 – 79 .
   Web of Science ®Google Scholar
• Hanson , G.H. and Harisson , A. 1999 . Trade liberalization and wage inequality in Mexico . Industrial and Labor Economics Review , 52 : 271 – 288 . doi: 10.2307/2525166
   Web of Science ®Google Scholar
• Harris , J.R. and Todaro , M.P. 1970 . Migration, unemployment and development atwo-sector analysis . The American Economic Review , 59 : 126 – 142 .
   Google Scholar
• Harrison , A. and Hanson , G. 1999 . Who gains from trade reform? Some remaining puzzles . Journal of Development Economics , 59 : 125 – 154 . doi: 10.1016/S0304-3878(99)00008-5
   Web of Science ®Google Scholar
• Isgut , A.E. 2001 . What’s different about exporters? Evidence from Colombian manufacturing . Journal of Development Studies , 37 : 57 – 82 . doi: 10.1080/00220380412331322121
   Web of Science ®Google Scholar
• Kar , S. and Beladi , H. 2004 . Skill formation and international migration: Welfareperspective of developing countries . Japan and the World Economy , 16 : 33 – 54 . doi: 10.1016/j.japwor.2002.10.001
   Web of Science ®Google Scholar
• Katz , L. , Loveman , G.W. and Blanchflower , D.G. A comparison of changes in the structure of wages in four OECD countries . NBER Working Paper .
   Google Scholar
• Kiley , M.T. 1999 . The supply of skilled labor and skilled-biased technological progress . Economic Journal , 109 : 708 – 724 . doi: 10.1111/1468-0297.00470
   Web of Science ®Google Scholar
• Lawrence , R.Z. Trade, multinationals and labour . NBER Working Paper 4836 . Cambridge , MA
   Google Scholar
• Leamer , E. 2000 . What’s the use of factor contents? . Journal of International Economics , 50 : 51 – 71 . doi: 10.1016/S0022-1996(99)00004-5
   Web of Science ®Google Scholar
• Marjit , S. 2003 . Economic reform and informal wage – A general equilibrium analysis . Journal of Development Economics , 72 : 371 – 378 . doi: 10.1016/S0304-3878(03)00082-8
   Web of Science ®Google Scholar
• Marjit , S. and Acharyya , R. 2003 . International trade, wage inequality and thedeveloping economy – A general equilibrium approach , Germany : Springer-Verlag .
   Google Scholar
• Marjit , S. and Acharyya , R. 2006 . Trade liberalization, skill-linked intermediate production and the two-sided wage gap . The Journal of Policy Reform , 9 : 203 – 217 . doi: 10.1080/13841280600911584
   Web of Science ®Google Scholar
• Marjit , S. and Kar , S. 2005 . Emigration and wage inequality . Economics Letters , 88 : 141 – 145 . doi: 10.1016/j.econlet.2005.02.003
   Web of Science ®Google Scholar
• Marjit , S. , Beladi , H. and Chakrabarti , A. 2004 . Trade and wage inequality in developing countries . Economic Inquiry , 42 ( 2 ) : 295 – 303 . doi: 10.1093/ei/cbh061
   Web of Science ®Google Scholar
• Pisauro , G. 1991 . The effects of taxes on labour in efficiency wage models . Journal of Public Economics , 46 ( 3 ) : 329 – 345 . doi: 10.1016/0047-2727(91)90011-P
   Web of Science ®Google Scholar
• Shapiro , C. and Stiglitz , J. 1984 . Equilibrium unemployment as a worker-discipline device . American Economic Review , 74 ( 3 ) : 433 – 444 .
   Web of Science ®Google Scholar
• Solow , R. 1979 . Another possible source of wage stickiness . Journal of Macroeconomics , 1 : 79 – 82 . doi: 10.1016/0164-0704(79)90022-3
   Google Scholar
• Wang , M. , Fang , C. and Huang , L. 2009 . International knowledge spillovers and wage inequality in developing countries . Economic Modelling , 26 ( 6 ) : 1208 – 1214 . doi: 10.1016/j.econmod.2009.05.008
   Web of Science ®Google Scholar
• Wood , A. 1997 . Openness and wage inequality in developing countries – The Latin American challenge to East Asian conventional wisdom . World Bank Research Observer , : 33 – 57 .
   Web of Science ®Google Scholar
• Wood , A. 1998 . Globalisation and the rise in labor market inequalities . The Economic Journal , 108 : 1463 – 1482 . doi: 10.1111/1468-0297.00354
   Web of Science ®Google Scholar
• Xu , B. 2003 . Trade liberalization, wage inequality, and endogenously determined non-traded goods . Journal of International Economics , 60 : 417 – 431 . doi: 10.1016/S0022-1996(02)00049-1
   Web of Science ®Google Scholar
• Yabuuchi , S. and Chaudhuri , S. 2009 . Skill formation, capital adjustment cost andwage inequality . Review of Urban and Regional Development Studies , 21 ( 1 ) : 2 – 13 . doi: 10.1111/j.1467-940X.2009.00156.x
   Google Scholar
• Zhu , S.C. and Trefler , D. 2005 . Trade and inequality in developing countries: A general equilibrium analysis . Journal of International Economics , 65 : 21 – 48 . doi: 10.1016/j.jinteco.2003.11.005
   Web of Science ®Google Scholar