Demographic Divide and Labor Migration in the Euro-Mediterranean Region
AbstractThis paper provides a demographic outlook of the Euro-Mediterranean region and then shows the economic and fiscal consequences of such demographic differences within a two-region model with international labor mobility. International labor mobility is also examined through an externalities framework where brain drain from migration could be taxed by the home countries. Taxing the brain drain has a substantial limiting effect on labor migration and a small negative effect on per worker growth. On the other hand, it could be a solution to the negative externality problem associated with brain drain. It is also found that such tax can raise substantial tax revenue for the SMCs which could be used to enhance human capital in the region.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6188.
Length: 23 pages
Date of creation: Dec 2011
Date of revision:
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Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-AGE-2011-12-19 (Economics of Ageing)
- NEP-ALL-2011-12-19 (All new papers)
- NEP-ARA-2011-12-19 (MENA - Middle East & North Africa)
- NEP-DEM-2011-12-19 (Demographic Economics)
- NEP-DGE-2011-12-19 (Dynamic General Equilibrium)
- NEP-MAC-2011-12-19 (Macroeconomics)
- NEP-MIG-2011-12-19 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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