Migrants’ Remittances, Agricultural Producer Service and Wage Inequality in the Dual Economy
Asian Journal of Economics, Business and Accounting · pp. 85–96 · Published 18 Dec 2023
10.9734/ajeba/2023/v23i241189Abstract
Previous literature finds that migrants’ remittance narrows down wage inequality between skilled and unskilled labor, since the external funds flow into the rural area and raise wage rate of unskilled labor. However, it should be noted that the structure of agricultural production has also changed and small-scale agriculture utilizes remittance to purchase producer service that could substitute unskilled labor. The paper establishes three-sector general equilibrium models and theoretically analyzes the impact of an increase in remittance rate on wage inequality between skilled and unskilled labor. In the primary stage of service sector, an increase in remittance rate reduces both skilled and unskilled wage rate and has an ambiguous impact on wage inequality. The obtained result of wage inequality is robust even when we extend the basic theoretical model by considering the popularization stage of service sector.
Cited by 0
No indexed citations yet.
Related research
- Why Do Migrants Remit? Empirical Evidence from Kenya — shares topic coverage
- The Impact of Foreign Aid on Economic Growth in Palestine: An Empirical Evidence — shares topic coverage
- Role of Women in Remittance-earning Households: Evidence from Sylhet City, Bangladesh — shares topic coverage
- Remittances Flow to India: Trends and Determinants — shares topic coverage
- Environmental Tax and Wage Inequality when Pollution Impacts Health or Agricultural Productivity in Developing Economy — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
0
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
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.