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Minimum Wage, Unemployment and International Migration

Author

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  • Slobodan Djajic

Abstract

This paper develops a two-country model of international migration to study the implications of opening a minimum wage economy to migration. An inflow of foreign labour may lower the income of the country's native factors of production. Moreover, while an increase in the minimum wage reduces employment, it may also lead to substitution of foreign for native workers in the remaining positions of employment. Finally, the paper studies the effects of capital accumulation on migration, the host country's unemployment rate, and worker's income in the two economies.

Suggested Citation

  • Slobodan Djajic, 1985. "Minimum Wage, Unemployment and International Migration," Working Paper 605, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:605
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    Cited by:

    1. Agiomirgianakis, George M., 1998. "Monetary Policy Games and International Migration of Labor in Interdependent Economies," Journal of Macroeconomics, Elsevier, vol. 20(2), pages 243-266, April.
    2. Agiomirgianakis, George M. & Zervoyianni, Athina, 2001. "Economic growth, international labour mobility, and unanticipated non-monetary shocks," Journal of Policy Modeling, Elsevier, vol. 23(1), pages 1-16, January.
    3. P. Giannoccolo, 2004. "The Brain Drain. A Survey of the Literature," Working Papers 526, Dipartimento Scienze Economiche, Universita' di Bologna.

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