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Labour Market Integration and Innovation: The Implications on Consumers

Chowdhury, Mehdi; Mukherjee, Arijit

Authors

Mehdi Chowdhury

ARIJIT MUKHERJEE Arijit.Mukherjee@nottingham.ac.uk
Professor of Industrial Economics



Abstract

We show the effects of labour market integration on consumers. Labour market integration allows the firms in the labour‐recipient countries to hire skilled and unskilled workers at lower wages. If labour market integration creates the possibility of migration of skilled workers, it increases investments in innovation and benefits the consumers. However, if labour market integration creates the possibility of migration of unskilled workers, it neither increases investment in innovation nor benefits the consumers always. Our results suggest that the effects of labour market integration on the consumers depend on several factors such as the market size, differences in the labour coefficients and wage and the type of migrated workers (i.e. skilled or unskilled workers)

Citation

Chowdhury, M., & Mukherjee, A. (2016). Labour Market Integration and Innovation: The Implications on Consumers. Manchester School, 84(6), 771-794. https://doi.org/10.1111/manc.12132

Journal Article Type Article
Acceptance Date Aug 18, 2015
Online Publication Date Nov 12, 2015
Publication Date 2016-12
Deposit Date Dec 9, 2018
Journal The Manchester School
Print ISSN 1463-6786
Electronic ISSN 1467-9957
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 84
Issue 6
Pages 771-794
DOI https://doi.org/10.1111/manc.12132
Public URL https://nottingham-repository.worktribe.com/output/1394363
Publisher URL https://onlinelibrary.wiley.com/doi/abs/10.1111/manc.12132