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International labor migration and social security: Analysis of the transition path

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  • Doris Geide-Stevenson

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  • Mun S. Ho

Abstract

This paper numerically simulates a two-country overlapping-generations model to study international labor migration when the two countries are characterized by different social-security systems. The present analysis extends previous work beyond steady-state considerations. The most striking result is that in all cases considered, dynamically efficient and inefficient economies in autarkic steady-state, migration leads to temporary welfare losses in both countries. In all cases, the transition path is characterized by temporary dynamic inefficiency in one country. Copyright Springer-Verlag 2004

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Bibliographic Info

Article provided by Springer in its journal Population Economics.

Volume (Year): 17 (2004)
Issue (Month): 3 (08)
Pages: 535-551

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Handle: RePEc:spr:jopoec:v:17:y:2004:i:3:p:535-551

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Related research

Keywords: F22; International migration; social security; OLG model;

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  1. Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
  2. Kondo, Hitoshi, 1989. "International Factor Mobility and Production Technology," Journal of Population Economics, Springer, Springer, vol. 2(4), pages 281-99.
  3. Galor, Oded, 1992. "The Choice of Factor Mobility in a Dynamic World," Journal of Population Economics, Springer, Springer, vol. 5(2), pages 135-44, April.
  4. CREMER, Helmuth & PESTIEAU, Pierre, . "Social insurance, majority voting and labor mobility," CORE Discussion Papers RP -1328, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  6. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, December.
  7. Stefan Homburg, 1991. "Interest and Growth in an Economy with Land," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 450-59, May.
  8. Reichlin, Pietro & Rustichini, Aldo, 1998. "Diverging patterns with endogenous labor migration," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 22(5), pages 703-728, May.
  9. Galor, Oded & Stark, Oded, 1991. "The Impact of Differences in the Levels of Technology on International Labor Migration," Journal of Population Economics, Springer, Springer, vol. 4(1), pages 1-12, March.
  10. Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
  11. Galor, Oded, 1986. "Time preference and international labor migration," Journal of Economic Theory, Elsevier, vol. 38(1), pages 1-20, February.
  12. Razin, A. & Sadka, E., 1999. "Unskilled Migration: a Burden or a Boon for the Welfare State?," Papers, Tel Aviv 8-99, Tel Aviv.
  13. van Dalen, Hendrik P., 1993. "International migration, economic policy and human capital accumulation : A simulation study," Economic Modelling, Elsevier, vol. 10(4), pages 417-430, October.
  14. Stefan Homburg & Wolfram Richter, 1993. "Harmonizing public debt and public pension schemes in the European community," Journal of Economics, Springer, Springer, vol. 7(1), pages 51-63, December.
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