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Inheritance, land, and capital mobility linked to labour mobility

Author

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  • Damien Gaumont

    (Université Paris 2 and ERMES, CNRS, UPRES-A 7017, 92, rue d'Assas, 75270 Paris Cedex 06, France)

  • Alice Mesnard

    (ARQADE 21 Allée de Brienne, 31000 Toulouse, France and Université Toulouse 1)

Abstract

This 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.

Suggested Citation

  • Damien Gaumont & Alice Mesnard, 2001. "Inheritance, land, and capital mobility linked to labour mobility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(4), pages 669-687.
    • Handle: RePEc:spr:jopoec:v:14:y:2001:i:4:p:669-687
    Note: Received: 8 July 1999/Accepted: 7 April 2000
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    Cited by:

    1. Damien Gaumont & Charbel Macdissi, 2012. "International Migration And Uncertainty:A Non-Factor Price Equalization Overlapping Generations Model," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(2), pages 151-177.
    2. Hamada, Kojun & Yanagihara, Mitsuyoshi, 2016. "Intergenerational altruism and the transfer paradox in an overlapping generations model," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 161-167.

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    More about this item

    Keywords

    International migration; altruism; overlapping generations;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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