USF St. Petersburg campus Faculty Publications
Efficiency wages and international factor mobility.
Document Type
Article
Publication Date
1993
ISSN
1016-8737
Abstract
This paper incorporates efficiency wages into the Heckscher-Ohlin model. The capital intensive sector pays higher wages than the other sector. One result is that tariffs to attract capital increase welfare by increasing the quality, not quantity, of jobs available. However, there are distributional effects among laborers. Some see an increase in wages, others become unemployed. The paper also investigates policies in the presence of illegal immigration. If immigration cannot be limited, a high wage country is best served by a capital outflow that eliminates the incentive for the labor inflow. Again, there are distributional effects among the workers.
Publisher
Routledge
Recommended Citation
Carter, T. J. (1993). Efficiency wages and international factor mobility. International Economic Journal, 7(1), 13-29. doi: 10.1080/10168739300000018
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Comments
Citation only. Full-text article is available through licensed access provided by the publisher. Members of the USF System may access the full-text of the article through the authenticated link provided.