Abstract
Using a dual structure depicting a developing economy, this paper shows that increased partial privatization or foreign competition can lead to wage inequality between skilled and unskilled labor. In addition, rising wage inequality can be triggered by inflows of unskilled labor or outflows of skilled labor and/or capital. Further, partial privatization or foreign competition reduces the urban output, thereby raising the goods price and unemployment ratio. These effects lower social welfare of the economy.
| Original language | English |
|---|---|
| Pages (from-to) | 375-385 |
| Journal | Journal of International Trade and Economic Development |
| Volume | 15 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - Sept 2006 |
Bibliographical note
Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].Funding
The work described in this paper was supported by a grant from the Research Grant Council of the Hong Kong Special Administrative Region, China (Project No. CUHK4110/04H).
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 1 No Poverty -
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities
Research Keywords
- Competition
- Developing economies
- Privatization
- Wage inequality
RGC Funding Information
- RGC-funded
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