Inheritance, land, and capital mobility linked to labour mobility
AbstractThis paper presents a two-country migration model, following Galor (1986), in which the world population consists of two types individuals. Individuals with a high (low) degree of altruism give to their children a high (low) level of bequest. Production uses three inputs: immobile land, mobile labour, and capital. Capital mobility is linked to labour mobility since individuals move with their inheritance. The model shows that countries are homothetic in the post-migration equilibrium with equal factor prices and equal densities of population. Migration flows are bilateral and the number of each type of migrants is uniquely determined. In some cases, migration leads to a Pareto improvement in both countries.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Population Economics.
Volume (Year): 14 (2001)
Issue (Month): 4 ()
Note: Received: 8 July 1999/Accepted: 7 April 2000
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Find related papers by JEL classification:
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
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