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An Equilibrium Model of Guest-Worker Migration

Author

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  • Slobodan Djajic
  • Ross Milbourne

Abstract

This paper examines the problem of guest-worker migration in an economy populated by identical, utility-maximizing agents with finite lives. The decision to migrate, the savings rate while abroad, and the migrants stay in the foreign country as viewed as the solution to an intertemporal optimization problem. The paper analyzes the determinants of the equilibrium flow of migrants, the domestic wage, and worker welfare. Effects of an emigration tax are also investigated.

Suggested Citation

  • Slobodan Djajic & Ross Milbourne, 1985. "An Equilibrium Model of Guest-Worker Migration," Working Paper 613, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:613
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    Cited by:

    1. Giuseppe Arcangelis & Majlinda Joxhe, 2015. "How do migrants save? Evidence from the British Household Panel Survey on temporary and permanent migrants versus natives," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    2. P. Giannoccolo, 2004. "The Brain Drain. A Survey of the Literature," Working Papers 526, Dipartimento Scienze Economiche, Universita' di Bologna.

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