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By making use of a simple general-equilibrium model that is relevant to a high-income developing country or a newly industrialised country, this paper examines the link between factor mobility and wage inequality. It is shown that, in the presence of specialisation-based external economies, emigration of skilled as well unskilled labour increases wage inequality even if the income shares of capital...
This paper examines the impact of changes in the supply of primary factors on the size of government and welfare. Unlike the existing studies, this paper utilises a model where the presence of monopolistic in the intermediate good sector gives rise to specialisation-based external economies in the final good sector. The size of theses external economies affects the magnitude of most comparative static...
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