Trade, foreign investment, and wage inequality in developing countries

Artikel

Liberalization of foreign trade and investment raises the domestic ratio of skilled to unskilled wages (skill premium) if the country has a sufficiently well-educated workforce, but lowers it otherwise. Wide wage inequality is undesirable on equity grounds, especially in poor countries where the bottom wage is close to the breadline; but it gives parents an incentive to invest in their children’s education. The incentive will be ineffective, however, if parents cannot borrow for their child’s education because of underdeveloped credit markets or because they are too poor to finance the investment from their own income and savings.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2015 ; Bonn: Institute for the Study of Labor (IZA)

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade and Labor Market Interactions ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Thema: trade openness ; offshoring ; skill endowments ; skill premium

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Cigno, Alessandro
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2015

Weitere Informationen

• DOI: doi:10.15185/izawol.193
• Handle: http://hdl.handle.net/10419/125423
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ