Examines the impact of labour emigration on the wages of both the skilled and unskilled workers. The paper is based on a 3×3 trade-theoretic model, where a subset of the goods produced are traded at internationally fixed prices. Using the Pakistani data, it is found that unskilled labour is used extremely intensively in the agriculture sector (exportable), skilled labour is used extremely intensively in the manufacturing sector (importable), and capital is used as the middle factor in both the traded goods sectors. Capital is used significantly less intensively in the construction (non-traded) sector relative to both the traded sectors. Based on the estimated relative factor intensitites, the model predicts that emigration of either skilled or unskilled workers from Pakistan, in the long run, would benefit (in nominal as well as real terms) both the skilled and unskilled workers and hurt the owners of capital. -from Author

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wage rate industrial sector Pakistan economics population demography Southern Asia developing country labour migration Population Dynamics Developing Countries wage level Asia socioeconomic status labour emigration Salaries and Fringe Benefits capital allocation social status Manpower Needs labor migration wage health care manpower Health Manpower Socioeconomic Factors personnel management socioeconomics Wages Article employment status capital migration international migration Demographic Factors Emigration and Immigration Economic Factors Transients and Migrants social class Human Resources Macroeconomic Factors employment Occupational Status