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International Trade and Economic Development$
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Rajat Acharyya and Saibal Kar

Print publication date: 2014

Print ISBN-13: 9780199672851

Published to Oxford Scholarship Online: September 2014

DOI: 10.1093/acprof:oso/9780199672851.001.0001

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International Labour Mobility and Welfare

International Labour Mobility and Welfare

(p.96) 5 International Labour Mobility and Welfare
International Trade and Economic Development

Rajat Acharyya

Saibal Kar

Oxford University Press

Labour flows from the poor to the rich nations have been a crucial component of international economic relations at least to the extent that it affects political debate in the developed countries. While international wage differentials should be the major driving force behind such movements, mass migration has also been caused by political violence, oppression, and natural calamities. The purpose of this chapter is to provide a broad overview of the literature on international migration, identify the major areas of research, and reflect on the contemporary policy perspective from the viewpoint of the developing world. The chapter discusses the source country perspectives on how capital inflow may lead to greater outflow of skilled workers and subsequently develops a model to provide a theoretical explanation behind such empirical observations.

Keywords:   migration, wage gap, skilled workers, capital inflow, welfare

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