Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model

Volume: 4 Number: 4 December 1, 2014
  • Radouane Raouf
  • Hicham Hafid
EN

Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model

Abstract

The aim of this paper is to analyze the impact of offshoring on employment in France. In economic analysis, is often associated the phenomenon of relocation to the problem of unemployment. Using a Computable General Equilibrium Model (CGEM), we simulate the relationship between offshoring to the CEECs and the rising inequality between skilled (TQ) and unskilled (TNQ) workers. In order to study this impact, we will initially talk about theoretical and empirical contributions explaining the relation “relocation-employment”. In a second step, we will develop a CGE model (the model is implemented in GAMS) to test the impact of offshoring to the CEECs on wage and unemployment rate for skilled and unskilled workers. The simulation results show that there is a negative effect of offshoring on the situation of TNQ in terms of wages and employment and a rather positive effect on TQ. This confirms the “Stolper-Samuelson” theorem.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Radouane Raouf This is me

Hicham Hafid This is me

Publication Date

December 1, 2014

Submission Date

December 1, 2014

Acceptance Date

-

Published in Issue

Year 2014 Volume: 4 Number: 4

APA
Raouf, R., & Hafid, H. (2014). Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model. International Journal of Economics and Financial Issues, 4(4), 758-772. https://izlik.org/JA74DN93JH
AMA
1.Raouf R, Hafid H. Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model. IJEFI. 2014;4(4):758-772. https://izlik.org/JA74DN93JH
Chicago
Raouf, Radouane, and Hicham Hafid. 2014. “Relocation and Inequalities Between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model”. International Journal of Economics and Financial Issues 4 (4): 758-72. https://izlik.org/JA74DN93JH.
EndNote
Raouf R, Hafid H (December 1, 2014) Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model. International Journal of Economics and Financial Issues 4 4 758–772.
IEEE
[1]R. Raouf and H. Hafid, “Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model”, IJEFI, vol. 4, no. 4, pp. 758–772, Dec. 2014, [Online]. Available: https://izlik.org/JA74DN93JH
ISNAD
Raouf, Radouane - Hafid, Hicham. “Relocation and Inequalities Between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model”. International Journal of Economics and Financial Issues 4/4 (December 1, 2014): 758-772. https://izlik.org/JA74DN93JH.
JAMA
1.Raouf R, Hafid H. Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model. IJEFI. 2014;4:758–772.
MLA
Raouf, Radouane, and Hicham Hafid. “Relocation and Inequalities Between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model”. International Journal of Economics and Financial Issues, vol. 4, no. 4, Dec. 2014, pp. 758-72, https://izlik.org/JA74DN93JH.
Vancouver
1.Radouane Raouf, Hicham Hafid. Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model. IJEFI [Internet]. 2014 Dec. 1;4(4):758-72. Available from: https://izlik.org/JA74DN93JH