Altruism and International Labour Migration
AbstractThis paper investigates the effect of altruism on the pattern of labour migration in a two-country overlapping generations model. We show that differences in degrees of altruism across countries lead to bilateral migration flows. Starting from the autarkic steady-state equilibrium, restrictions on labour migration are relaxed. In temporary post-migration equilibrium factor prices are equal across countries. We then characterize the unique stable steady-state equilibrium: both countries are populated and this equilibrium is not a Pareto improvement. Some individuals prefer to live in autarky, others in an integrated world economy.
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Bibliographic InfoPaper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 99-05.
Date of creation: 1999
Date of revision:
Other versions of this item:
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
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