The paper attempts to find out the relationship between informal wage and innovative efforts of firms in the formal sector in countries such as India, where informal sector captures lion's share of total workforce. A firm employs both formal and informal workers to produce a good. In equilibrium...

This paper provides a detailed survey on the literature on trade and migration. We discuss several aspects on international mobility of labor with heterogeneous skill types and relate that to the movement of goods and services between nations, as also the issue of welfare and capital formation...