Skip to content
Research Article Open access CC BY 4.0

International Factor Mobility, Rural Development Policies and Wage Inequality in the Presence of Industrial Goods as Intermediate Input in Agriculture

Dianshuang Wang

Asian Journal of Economics, Business and Accounting · pp. 97–111 · Published 19 Dec 2023

10.9734/ajeba/2023/v23i241190

Abstract

The paper develops a three-sector small open economy model with two final good sector and a non-trade good sector producing industrial intermediate goods in agriculture. It is shown that an increase in either type of labour endowment (capital endowment) raises (lowers) the unemployment rate of either type of labour if the scale elasticity of output is very low. On the other hand, if the industrial sector is more capital intensive than the agricultural sector and if efficiency functions of both types of labour are identical, then an increase in either type of labour endowment (capital endowment) lowers (raises) the skilled–unskilled wage ratio. However, the effect of a change in capital endowment on the Gini Coefficient of wage income distribution is ambiguous in sign.

International factor mobility rural development policies wage inequality industrial intermediate input

References (9)

  1. 1 International Review of Economics and Finance
  2. 2 International review of economics & finance
  3. 3 Public infrastructure provision and skilled–unskilled wage inequality in developing countries [DOI]
  4. 4 Trade liberalisation, market competition and wage inequality in China's manufacturing sector [DOI]
  5. 5 The impacts of capital market distortion on wage inequality, urban unemployment, and welfare in developing countries [DOI]
  6. 6 Migrant remittance, agricultural producer services, and environmental pollution [DOI]
  7. 7 Rural–Urban Migration, the Informal Sector, Urban Unemployment, and Development Policies: A Theoretical Analysis [DOI]
  8. 8 Wage inequality and welfare in developing countries: Privatization and reforms in the short and long run [DOI]
  9. 9 Trade and market congestion: An explanation for widening skilled–unskilled wage differential [DOI]

Cited by 0

No indexed citations yet.

Related research

Article metrics

Real usage data collected on this platform.

6

Page views

0

PDF downloads

0

Outbound clicks

0

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.