The present paper establishes a two-sector general equilibrium model and conduct the comparative static approach to investigate the impact exerted by an increase in the remittance rate of the unskilled migrants on the skilled-unskilled wage inequality in the labor host region. We find that the unskilled migrants increase their remittance rate to the labor outsourcing regions that will decrease the skilled-unskilled wage inequality in the labor host region.
- Labor host region
- Skilled-unskilled wage inequality
- Unskilled migrants
ASJC Scopus subject areas
- Economics and Econometrics