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Migration and unemployment in an efficiency wage model of a small open economy


  • Michael Bleaney

    () (University of Nottingham)


International migration affects equilibrium unemployment in a small open economy characterised by efficiency wages. Immigration into employment reduces unemployment rates, and immigration into unemployment increases them. The effect of emigration depends on its impact on the aggregate job turnover rate.

Suggested Citation

  • Michael Bleaney, 2005. "Migration and unemployment in an efficiency wage model of a small open economy," Economics Bulletin, AccessEcon, vol. 6(21), pages 1-6.
  • Handle: RePEc:ebl:ecbull:eb-05f20007

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    References listed on IDEAS

    1. Kjell Erik Lommerud & Frode Meland & Lars S¯rgard, 2003. "Unionised Oligopoly, Trade Liberalisation and Location Choice," Economic Journal, Royal Economic Society, vol. 113(490), pages 782-800, October.
    2. Leahy, Dermot & Montagna, Catia, 2000. "Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?," Economic Journal, Royal Economic Society, vol. 110(462), pages 80-92, March.
    3. Zhao, Laixun, 1995. "Cross-hauling direct foreign investment and unionized oligopoly," European Economic Review, Elsevier, vol. 39(6), pages 1237-1253, June.
    4. Bughin, Jacques & Vannini, Stefano, 1995. "Strategic direct investment under unionized oligopoly," International Journal of Industrial Organization, Elsevier, vol. 13(1), pages 127-145, March.
    5. Robin Naylor & Michele Santoni, 2003. "Foreign direct investment and wage bargaining," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 12(1), pages 1-18.
    6. Skaksen, Mette Yde & Sorensen, Jan Rose, 2001. "Should trade unions appreciate foreign direct investment," Journal of International Economics, Elsevier, vol. 55(2), pages 379-390, December.
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    More about this item


    efficiency wages;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers


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