Title

Efficiency wages and international factor mobility.

SelectedWorks Author Profiles:

Thomas J. Carter

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.

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.

Publisher

Routledge

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.