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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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Information, Labour Migration, and Occupation

Information, Labour Migration, and Occupation

(p.127) 6 Information, Labour Migration, and Occupation
International Trade and Economic Development

Rajat Acharyya

Saibal Kar

Oxford University Press

It would be erroneous to conceive that the positive effects of international trade and factor mobility are contained within the boundaries of the developing countries. An important issue that is central to factor mobility, in particular labour mobility given the current trend of the South-to-North migration pattern, is how the immigrants perform in the developed world. This chapter argues that one core element in the entire mechanism that can significantly explain both has thus far not received the adequate attention it deserves. The chapter shows that the existence of asymmetric information in cross-border labour markets is such an element that strongly influences the choice of occupation among immigrants in favour of self-employment/entrepreneurship and subsequently acts as a strong catalyst in favour of catching-up economically.

Keywords:   international migration, occupation, self-employment, asymmetric information, income gap

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