International factor mobility, elasticity of substitution in production and the skilled–unskilled wage gap

2015 ◽  
Vol 35 ◽  
pp. 122-129 ◽  
Author(s):  
Jingjing Zhang
1983 ◽  
Vol 14 (1-2) ◽  
pp. 103-114 ◽  
Author(s):  
Guillermo Calvo ◽  
Stanislaw Wellisz

2015 ◽  
Vol 15 (2) ◽  
pp. 503-522 ◽  
Author(s):  
Jiancai Pi ◽  
Yu Zhou

Abstract The present paper establishes a two-sector monopolistic competition model to investigate how international factor mobility influences the skilled–unskilled wage inequality when the monopolistically competitive sector producing final goods is characterized by various types of production cost functions. We discuss three types of production cost functions of the monopolistically competitive sector. Different types of production cost functions have different production factor components of variable and fixed costs. We find that differences in production cost components of the monopolistically competitive sector matter for the impacts of international factor mobility on the skilled–unskilled wage inequality.


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