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Unemployment, International Migration and Profit-Sharing

In: The Economics of Illegal Immigration

Author

Listed:
  • Chisato Yoshida
  • Alan D. Woodland

Abstract

We develop the standard (two-country, one-good, two-factor) model of international immigration, in which we have unemployment in the host (capital abundant) country and in the foreign (labor abundant) country. Our main result is that the introduction of a profit-sharing plan by the host country causes: (1) Employment of domestic labor increases, (2) immigration decreases, (3) the domestic (foreign) country’s welfare rises (falls), and, under certain circumstances, (4) global welfare rises in the presence of international capital immobility.

Suggested Citation

  • Chisato Yoshida & Alan D. Woodland, 2005. "Unemployment, International Migration and Profit-Sharing," Palgrave Macmillan Books, in: The Economics of Illegal Immigration, chapter 8, pages 129-142, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-51488-1_8
    DOI: 10.1057/9780230514881_8
    as

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