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Coût de mobilité endogène et flexibilité du marché du travail
[Endogenous Cost of mobility and labor market flexibility]

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  • Bouzahzah, Mohamed
  • Saber, Brahim

Abstract

The article examines the impact of labor mobility cost subsidy on levels of emigrations between two identical countries. The analysis is led in an OLG model with two countries. The analysis is conducted as part of an overlapping generations model with two countries. Individuals bear the cost of endogenous mobility. It depends on the number of fellow citizens of the candidate to emigration they are already present in the host country. Each individual is different by a degree of attachment to his country, the less attached are the most prescribed. We show that a grant of part of the cost of mobility in the early starters can initiate the process of emigration and reduce these costs. Other people decide to emigrate even though they are not subsidized and have a degree of attachment to their country more important than the first emigrants. The study of welfare shows that this is positive in the send country when the cost of migration is weak and it is similarly in the host country when the rate of migration is weak.

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File URL: http://mpra.ub.uni-muenchen.de/38982/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38982.

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Date of creation: 07 Jun 2012
Date of revision: 07 Jun 2012
Handle: RePEc:pra:mprapa:38982

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Keywords: Labor mobility; endogenous mobility cost; overlapping generations;

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  1. Michael Fertig & Christoph M. Schmidt, 2003. "Mobility within Europe - What Do We (Still Not) Know?," European Economy Group Working Papers 29, European Economy Group.
  2. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  3. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
  4. Hélène Erkel-Rousse, 1997. "Degré de flexibilité des marchés du travail, ajustement à des chocs asymétriques et union monétaire européenne," Économie et Prévision, Programme National Persée, vol. 128(2), pages 79-100.
  5. I. Ruyssen & G. Everaert & G. Rayp, 2011. "Determinants of International Migration to the OECD in a Three-Way Dynamic Panel Framework," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/696, Ghent University, Faculty of Economics and Business Administration.
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