Income Restribution and Migration
AbstractThis paper analyzes redistribution policies that transfer income between owners of immobile factors of production and workers in a given region. The menu of income distribution possibilities attainable through tax/transfer policy in the presence of labor mobility is characterized. Simple general equilibrium analysis shows that migration can lead to Pareto inferior outcomes in the destination region if immigrants are the beneficiaries of redistributive transfers. All residents of the destination region may gain, however, if transfer payments are also paid to workers in the source region so as to reduce the level of immigration.
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Bibliographic InfoPaper provided by Indiana - Center for Econometric Model Research in its series Papers with number 92-003.
Length: 23 pages
Date of creation: 1992
Date of revision:
Contact details of provider:
Postal: Indiana University, Center for Econometric Model Research, Department of Economics; Bloomington, IN 47405.
Web page: http://www.indiana.edu/~econweb/
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income ; migration;
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