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Redistributive Policy with Labour Mobility across Countries

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  • LEITE MONTEIRO , Manuel

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

Abstract

It is generally believed that international labour mobility lowers the level of redistribution each country wishes to undertake. This paper considers a model with two countries where each government redistributes income between two types of individuals. Using a general equilibrium model it is shown that there are situations where the level of redistribution in one of the two countries is in fact higher than in the absence of individual mobility. This higher level of redistribution is explained by the migration induced changes in the structure of the population in both countries, namely by the increase in the proportion of high income individuals in the country that may experience excessive redistribution.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1994070.

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Date of creation: 01 Dec 1994
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Handle: RePEc:cor:louvco:1994070

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  1. LEITE MONTEIRO , Manuel, 1994. "Redistributive Policy with Labour Mobility across Countries," CORE Discussion Papers 1994070, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Robin W. Boadway & Frank R. Flatters, 1982. "Efficiency and Equalization Payments in a Federal System of Government: A Synthesis and Extension of Recent Results," Canadian Journal of Economics, Canadian Economics Association, vol. 15(4), pages 613-33, November.
  3. Wilson, John D., 1982. "Optimal linear income taxation in the presence of emigration," Journal of Public Economics, Elsevier, vol. 18(3), pages 363-379, August.
  4. MICHEL, Philippe & PESTIEAU, Pierre & VIDAL, Jean-Pierre, 1995. "Labor Mobility and Redistribution with Evolving Altruism : The Small Economy Case," CORE Discussion Papers 1995059, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Christiansen, Vidar & Hagen, Kare P & Sandmo, Agnar, 1994. " The Scope for Taxation and Public Expenditure in an Open Economy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 96(3), pages 289-309.
  6. David E. Wildasin, 1994. "Income Redistribution and Migration," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 637-56, August.
  7. Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
  8. Wilson, John D., 1980. "The effect of potential emigration on the optimal linear income tax," Journal of Public Economics, Elsevier, vol. 14(3), pages 339-353, December.
  9. Wildasin, D.E., 1991. "Ralaxation of Barriers to factor Mobilty and Income Redistribution," Papers 92-009, Indiana - Center for Econometric Model Research.
  10. repec:fth:louvco:9559 is not listed on IDEAS
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