Unskilled immigration,technical progress,and wages—Role of the household sector

This paper revisits the relationship between unskilled immigration and skilled wage in the context of the BREXIT episode. Our simple general equilibrium model introduces a household sector, the inclusion of which shows that both return to capital and effective skilled wage may increase with a greater inflow of immigrants. This is a novel outcome in the theory of trade and factor flows. In addition, though technical progress in a skill‐intensive sector raises wage inequality, it no longer displaces traditional jobs. Here, the usual negative impact of unskilled immigration on the traditional sector is mitigated by increased returns to the unskilled workers.     

Optimal Duration of Promotion for Durable Technology Product in a Segmented Market

ABSTRACT

Firms develop segment driven promotional mix to target its potential customers selectively. As the marginal revenues from promotion decreases with time, it is important to determine the optimal stopping time of a promotional activity. In the literature, the studies carried in this domain do not consider market segmentation and assume a uniform promotional mix. In this study, alternative decision models are developed to determine the duration of promotion for a durable technology product applicable to a segmented market. A case study is discussed to validate the proposed models and to illustrate the solution methodology based on a differential evolution algorithm.