User:Marko Đogo/sandbox

Chang's curve is an economic principle proposed by Prof Marko Djogo in his paper wages and Emigration: Is there Chang's curve? According to Djogo's opinion “wage growth, in a  situation where the base  (wage level)  is extremely low,  actually stimulates emigration instead of destimulating it. The reason for this phenomenon should be sought in obstacles (costs)  that prevent the proletarians from immigrating to the more developed countries as long as their wages are extremely low. Thus, wage growth enables these costs to be financed and they de facto encourage departure. ”

According to this research connection between wages and emigration goes thru four stages: 1. "Zone of pauperism" (low relative wages-low emigration) 2. "Middle-income trap" zone (an increase of relative wages - a dramatic increase of emigration) 3. "New hope" zone (a further increase of relative wages - a decrease of emigration) 4. "Satisfactory level of a development" zone (not to signifocant wages differences - emigration returns to "normal" level)

This could be significant as a way of explaining, for example, the dynamics of emigration from Mexico to the US, or from Poland to Germany.