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Time preference and labour migration in an OLG model with land and capital

Author

Listed:
  • Jean-Pierre Vidal

    (CORE, CREPP, University of Liège and CEME, University of Paris I, France)

  • Philippe Michel

    (CORE, IUF, GREQAM and University of Aix-Marseille II, France)

  • Bertrand Crettez

    (CERDO, University of Paris IX and CEME, University of Paris I, 12, Place du Panthéon, F-75231 Paris Cedex 05, France)

Abstract

This paper constructs a two-country migration model in the lines of Galor (1986), in which the world population consists of individuals of two types who have different time preferences. Production uses three inputs: mobile labour, immobile capital and land. It is shown that both countries are necessarily inhabited by agents of both types and exhibit equal density of population and equal interest rate at the steady state equilibrium of the integrated economy. The steady state welfare implications of international labour migration are studied. JEL classifications: F22, J61

Suggested Citation

  • Jean-Pierre Vidal & Philippe Michel & Bertrand Crettez, 1996. "Time preference and labour migration in an OLG model with land and capital," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(4), pages 387-403.
    • Handle: RePEc:spr:jopoec:v:9:y:1996:i:4:p:387-403
    Note: Received March 13, 1995 / Accepted November 13, 1995
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    References listed on IDEAS

    as
    1. Galor, Oded & Stark, Oded, 1991. "The Impact of Differences in the Levels of Technology on International Labor Migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 4(1), pages 1-12, March.
    2. Galor, Oded & Stark, Oded, 1994. "Migration, Human Capital Formation, and Long-Run Output," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 59-68.
    3. Galor, Oded, 1986. "Time preference and international labor migration," Journal of Economic Theory, Elsevier, vol. 38(1), pages 1-20, February.
    4. Galor, Oded, 1992. "The Choice of Factor Mobility in a Dynamic World," Journal of Population Economics, Springer;European Society for Population Economics, vol. 5(2), pages 135-144, April.
    5. Kochhar, Rakesh, 1992. "International Labor Migration and Domestic Labor Supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 5(2), pages 113-134, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Philippe Michel & Jean-Pierre Vidal, 2000. "Economic integration and growth under intergenerational financing of human-capital formation," Journal of Economics, Springer, vol. 72(3), pages 275-294, October.
    2. Magris, Francesco & Russo, Giuseppe, 2009. "Selective immigration policies, human capital accumulation and migration duration in infinite horizon," Research in Economics, Elsevier, vol. 63(2), pages 114-126, June.
    3. Luca Marchiori & Ingmar Schumacher, 2011. "When nature rebels: international migration, climate change, and inequality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 569-600, April.
    4. Emmanuel Thibault, 2001. "Labor immigration and long-run welfare in a growth model with heterogenous agents and endogenous labor supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 391-407.
    5. Jean-Pierre Vidal & Philippe Michel & Bertrand Crettez, 1998. "Time preference and capital mobility in an OLG model with land," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(1), pages 149-158.
    6. Alain Jousten & Pierre Pestieau, 2002. "Labor Mobility, Redistribution, and Pension Reform in Europe," NBER Chapters, in: Social Security Pension Reform in Europe, pages 85-108, National Bureau of Economic Research, Inc.
    7. Jung Young-Cheol & Quyen Nguyen V., 2012. "The Global Transmission of Government Debt," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-24, July.
    8. Frédéric Docquier & Joël Machado & Khalid Sekkat, 2015. "Efficiency Gains from Liberalizing Labor Mobility," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 303-346, April.
    9. Mehmet S. Tosun, 2016. "Demographic Changes and Fiscal Policy in MENA Countries," Working Papers 1023, Economic Research Forum, revised Jul 2016.
    10. Mr. Mehmet S Tosun, 2005. "Global Aging and Fiscal Policy with International Labor Mobility: A Political Economy Perspective," IMF Working Papers 2005/140, International Monetary Fund.
    11. Klaus Nowotny, 2010. "Risk Aversion, Time Preference and Cross-border Commuting and Migration Intentions," WIFO Working Papers 379, WIFO.
    12. Mehmet Serkan Tosun, 2004. "Population Aging, Labor Mobility, and Economic Growth: Evidence From MENA and the Developed World," Working Papers 0417, Economic Research Forum, revised Aug 2004.
    13. 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.
    14. Vidal, Jean-Pierre, 2000. "Capital Mobility in a Dynastic Framework," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 606-625, July.
    15. Damien Gaumont & Alice Mesnard, 2000. "Altruism and international labour migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 113-126.
    16. 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.
    17. Leers, Theo & Meijdam, Lex & Verbon, Harrie A. A., 2004. "Ageing, migration and endogenous public pensions," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 131-159, January.
    18. Klaus Nowotny, 2014. "Cross-border commuting and migration intentions: the roles of risk aversion and time preference," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 8(2), June.
    19. Volker Meier, 2000. "Time preference, international migration, and social security," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 127-146.
    20. Jean-Pierre Vidal, 1998. "The effect of emigration on human capital formation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(4), pages 589-600.
    21. Vidal, J.-P., 1999. "Capital Mobility in a Dynastic Framework," G.R.E.Q.A.M. 99a21, Universite Aix-Marseille III.
    22. Leers, T., 2001. "Public pensions and population ageing : An economic analysis of fertility, migration and social-security policy," Other publications TiSEM 0c2c876f-d263-4d1e-b820-c, Tilburg University, School of Economics and Management.
    23. Ronald Ravinesh Kumar & Peter J. Stauvermann, 2023. "International Borrowing and Lending in the Presence of Oligopolistic Competition," JRFM, MDPI, vol. 16(8), pages 1-26, July.

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    More about this item

    Keywords

    Migration · overlapping generations;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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