Redistributive Policy with Labour Mobility across Countries
AbstractIt 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 InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1994070.
Date of creation: 01 Dec 1994
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Other versions of this item:
- Leite-Monteiro, Manuel, 1997. "Redistributive policy with labour mobility across countries," Journal of Public Economics, Elsevier, vol. 65(2), pages 229-244, August.
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- Wildasin, D.E., 1992.
"Income Restribution and Migration,"
92-003, Indiana - Center for Econometric Model Research.
- Leite-Monteiro, Manuel, 1997.
"Redistributive policy with labour mobility across countries,"
Journal of Public Economics,
Elsevier, vol. 65(2), pages 229-244, August.
- 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).
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- 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).
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