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Title: |
Efficiency Wages and International Factor Mobility |
| Author: |
Carter, Thomas
J. |
| Author
Affiliation: |
U OK |
| Source: |
International Economic Journal, Spring 1993, v. 7, no. 1, pp. 13-29 |
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Publication Date: |
Spring 1993 |
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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. |
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