INTERNATIONAL LABOR MIGRATIONS AND THE PSEUDOCONVERGENCE OF NATIONAL LIVING STANDARDS

International labour immigrations between competitive economies promot e divergence in international living standards though conventional per capita income measures suggest convergence. Observed convergence due to such immigrations is therefore a pseudoconvergence. Pseudoconvergen ce arises regardless of good and productive factor numbers but need no t arise if competitive imperfections arise from increasing returns or sticky real wages.