The present paper develops a two-sector, specific factor general equilibrium framework for analyzing endogenous skill formation in a dynamic set-up and examining the consequence of a public subsidy policy on education on the skilled-unskilled wage inequality in a small open economy. It shows that given the technologies of production the policy produces a favorable impact on the wage inequality only in one of the two periods while producing an adverse consequence in the other. If the wage income inequality improves (deteriorates) in period 1 it worsens (ameliorates) in period 2 under the same sufficient conditions. The results are found to be more or less valid even in the presence of unemployment of unskilled labour. Finally, some composite policy recommendations have been suggested so that the relative wages always move in favor of the poorer section of the working population. © 2017 Elsevier Inc.

SARBAJIT CHOWDHURY

Economics

A GHOSH

D BANERJEE

University of Calcutta (informally known as Calcutta University or CU) is a collegiate public state university located in Kolkata, West Bengal, India.&nbsp;Within India it is recognized as a &quot;Five-Star University&quot; and accredited &quot;A&quot; Grade by National Assessment and Accreditation Council.

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The University of Calcutta has secured the Fifth position among the Universities of India in the prestigious &quot;Indian University Ranking 2019&quot; list, released by the NIRF of the Ministry of Human Resource Development, Government of India.

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It was established on 24 January 1857, and was one of the first institutions in Asia to be established as a multidisciplinary and Western-style university. Its alumni and faculty include several heads of state, heads of government, social reformers, prominent artists, only academy award winner and Dirac medal winner in India, many Fellows of the Royal Society and five Nobel laureates as of 2019 which is highest in South Asia.

University Of Calcutta

International Review of Economics and Finance

This paper is aimed at theoretically examining the consequence of the anti-immigration policy adopted in the destination country on the skilled-unskilled wage inequality in a source nation using a couple of two-sector, specific-factor general equilibrium models in both the presence and absence of unemployment. Emigration requires incurring some capital cost for professional skill formation on the part of every prospective emigrant that adds to the opportunity cost of emigration. The authority of the destination country determines the number of visas to be granted and hence directly controls the magnitude of skilled emigration from the source country. In the migration equilibrium, the expected skilled wage income abroad is equal to the opportunity cost of emigration. In both the presence and absence of unemployment of unskilled labor, the outcome of the policy on the wage inequality crucially hinges on both the magnitude of the fixed cost of emigration and the technological factors. In the specific-factor Harris-Todaro model, the degree of imperfection in the unskilled labor market is an additional factor. Finally, some policy recommendations have been made for protecting the interest of the poor unskilled workforce.

Economics and Politics

Anti-immigration policy in the destination country and skilled-unskilled wage inequality in a source economy with or without unemployment

Children in poor countries are subjected to exploitation characterized by low wages and long hours of work, as well as by unclean, unhygienic and unsafe working and living conditions, and, more importantly, by deprivation from education, all of which hampers their physical and mental development. Child labour is a complex issue, and clearly it has no simple solution. This book sheds some understanding of its root causes. The book attempts to delve into many of the important theoretical aspects of child labour and suggests policies that could indeed be useful in dealing with the problem under diverse situations using alternative multisector general equilibrium models. © 2017 Sarbajit Chaudhuri and Jayanta Kumar Dwibedi. All rights reserved.

The Economics of Child Labour in the Era of Globalization: Policy issues

The economics of child labour in the era of globalization: Policy issues

The paper attempts to identify the different channels through which economic reforms can affect the incidence of child labour in a developing economy using a three-sector general equilibrium framework with child labour. We show that reduction in poverty is not a necessary condition for the problem of child labour to improve in the developing economies. Economic reforms like an inflow of foreign capital can mitigate the incidence of child labour by raising the return to education and lowering the earning opportunities of children. © 2009 Elsevier Inc. All rights reserved.

Fulltext

Foreign capital, return to education and child labour

The present paper purports to examine the consequence of a mid-day meal program and/or cash stipend scheme on the incidence of child labour in a developing economy using a three-sector general equilibrium model. It has been found that the policy may be counterproductive as it lowers both the initial incomes of the working families and the return on education. Direct cash payments to the working families instead of a mid-day meal program are likely to be effective in eradicating the problem of child labour. © 2009 The Author. Journal compilation © 2009 Japanese Economic Association.

Japanese Economic Review

Mid-day meal program and incidence of child labour in a developing economy

The paper employs a three-sector general equilibrium model for examining the consequences of an infrastructure development scheme to the education sector and an inflow of foreign capital on the skilled-unskilled wage inequality in a developing economy. The education sector faces a capital adjustment cost for which the effective unit cost of capital depends positively on the amount of capital employed. Although both infrastructure development schemes and inflows of foreign capital lead to higher skill formation, the policies produce incongruent effects on the wages of skilled and unskilled labor. Furthermore, the effects of the policies on the skilled-unskilled wage inequality depend crucially on the relative factor intensities of the low-skill and high-skill sectors. Finally, which of the two policies a country should adopt will depend on technological, institutional and trade related factors. © The Applied Regional Science Conference (ARSC) / Blackwell Publishing Asia Pty Ltd. 2009.

Review of Urban and Regional Development Studies

Skill formation, capital adjustment cost and wage inequality

This paper analyzes the consequences of international factor movements on the skilled-unskilled wage inequality in a dual-economy set-up that includes unemployment and three intersectorally mobile factors of production-unskilled labor, skilled labor, and capital. Thus far, theoretical literature on this subject has adopted the full-employment framework and hence ignored the problem of unemployment. The analysis in this paper reveals that the results crucially depend on the difference in the intersectoral factor intensities between skilled labor and capital. In particular, it demonstrates the existence of a possibility of deterioration in wage inequality following foreign unskilled-labor inflow. © 2008 The Authors Journal compilation © 2008 Blackwell Publishing Ltd.

Journal	Data powered by TypesetInternational Review of Economics and Finance
Publisher	Data powered by TypesetElsevier Inc.
ISSN	1059-0560