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Migration, Medical Aid And Welfare

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  • WATARU KUREISHI
  • KEN TABATA

Abstract

This paper constructs a simple rural‐urban migration model that explicitly incorporates the interactions between the individual's migration decision, the risk of incurring an infectious disease and unemployment. We show that providing a subsidy for health investment in urban regions in the form of medical aid does not improve individual welfare. This is because it induces further urban migration, increases the risk of infection and unemployment, and offsets completely the positive cost‐reduction effect.

Suggested Citation

  • Wataru Kureishi & Ken Tabata, 2007. "Migration, Medical Aid And Welfare," Australian Economic Papers, Wiley Blackwell, vol. 46(4), pages 329-347, December.
    • Handle: RePEc:bla:ausecp:v:46:y:2007:i:4:p:329-347
    DOI: 10.1111/j.1467-8454.2007.00323.x
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    6. Root, Graham, 1997. "Population density and spatial differentials in child mortality in Zimbabwe," Social Science & Medicine, Elsevier, vol. 44(3), pages 413-421, February.
    7. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
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