IDEAS home Printed from https://ideas.repec.org/a/seb/journl/v2y2004i1p85-96.html
   My bibliography  Save this article

Reducing the Inflow of Unskilled Foreign Workers

Author

Listed:
  • Akira Shimada

    (Faculty of Economics, Nagasaki University)

Abstract

This paper investigates the effects of minimum wages on the inflow of unskilled foreign workers in a two-country macroeconomic model. We assume that all workers are unskilled and workers move from a country of lower expected real-consumption wages to a country of higher ones. This paper shows that, in cases where minimum wages are not introduced, workers move from a country with a larger domestic labor force to a country with a smaller one. If minimum wages are introduced into a country with a smaller domestic labor force, such migration can probably be reduced.

Suggested Citation

  • Akira Shimada, 2004. "Reducing the Inflow of Unskilled Foreign Workers," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 2(1), pages 85-96.
    • Handle: RePEc:seb:journl:v:2:y:2004:i:1:p:85-96
    as

    Download full text from publisher

    File URL: http://www.asecu.gr/Seeje/issue02/shimada.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zervoyianni, Athina, 1997. "Monetary Policy Games and Coalitions in a Two-Country Model with Unionised Wage Setting," Oxford Economic Papers, Oxford University Press, vol. 49(1), pages 57-76, January.
    2. 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.
    3. Henrik Jensen, 1993. "International monetary policy cooperation in economies with centralized wage setting," Open Economies Review, Springer, vol. 4(3), pages 269-285, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shimada, Akira, 2005. "Foreign worker participation in labor markets and the economy's welfare," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 355-362, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Borda, Patrie & Gaumont, Damien & Manioc, Olivier, 2011. "Unions’ Coordination and the Central Banker’s behavior in a Monetary Union," MPRA Paper 50293, University Library of Munich, Germany.
    2. Agiomirgianakis, George & Zervoyianni, Athina, 2001. "Globalization of labor markets and macroeconomic equilibrium," International Review of Economics & Finance, Elsevier, vol. 10(2), pages 109-133.
    3. Agiomirgianakis, George & Zervoyianni, Athina, 2001. "Macroeconomic equilibrium with illegal immigration," Economic Modelling, Elsevier, vol. 18(2), pages 181-202, April.
    4. Cukierman, Alex & Lippi, Francesco, 2001. "Labour Markets and Monetary Union: A Strategic Analysis," Economic Journal, Royal Economic Society, vol. 111(473), pages 541-565, July.
    5. 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.
    6. Helge Berger & Carsten Hefeker & Ronnie Schöb, 2004. "Optimal Central Bank Conservatism and Monopoly Trade Unions," IMF Staff Papers, Palgrave Macmillan, vol. 51(3), pages 585-605, November.
    7. Henrik Jensen, 1992. "Time inconsistency problems and commitments of monetary and fiscal policies," Journal of Economics, Springer, vol. 56(3), pages 247-266, October.
    8. Holden,S., 1999. "Wage setting under different monetary regimes," Memorandum 12/1999, Oslo University, Department of Economics.
    9. Vincenzo Cuciniello, 2011. "The Welfare Effect of Foreign Monetary Conservatism with Nonatomistic Wage Setters," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(8), pages 1719-1734, December.
    10. 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.
    11. Cukierman, Alex & Lippi, Francesco, 1999. "Central bank independence, centralization of wage bargaining, inflation and unemployment:: Theory and some evidence," European Economic Review, Elsevier, vol. 43(7), pages 1395-1434, June.
    12. Nicola Acocella & Giovanni Di Bartolomeo, 2003. "Wage and Public Expenditure Setting in a Monetary Union," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 6(1-2), pages 1-16, May - Nov.
    13. Cuciniello, Vincenzo, 2013. "Large labour unions and terms-of-trade externality," Economics Letters, Elsevier, vol. 120(1), pages 135-138.
    14. Joseph Daniels & David VanHoose, 1998. "Two-Country Models of Monetary and Fiscal Policy: What Have We Learned? What More Can We Learn?," Open Economies Review, Springer, vol. 9(3), pages 265-284, July.
    15. Nicola Acocella & Giovanni Di Bartolomeo, 2001. "Partisanship and fiscal policy co-ordination in a monetary union," Macroeconomics 0106003, University Library of Munich, Germany.
    16. Cuciniello, Vincenzo & Lambertini, Luisa, 2016. "Optimal exchange rate flexibility with large labor unions," Journal of International Money and Finance, Elsevier, vol. 63(C), pages 112-136.
    17. Shimada, Akira, 2005. "Foreign worker participation in labor markets and the economy's welfare," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 355-362, April.
    18. Robert Franzese, 2001. "Strategic Interactions of Monetary Policymakers and Wage/Price Bargainers: A Review with Implications for the European Common-Currency Area," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(4), pages 457-486, December.

    More about this item

    Keywords

    International migration of unskilled labor; Minimum wages; Two-country macroeconomic model;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:seb:journl:v:2:y:2004:i:1:p:85-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ms. Melina Petromelidou (email available below). General contact details of provider: https://edirc.repec.org/data/asecuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.