Altruism and international labour migration
This paper investigates the effect of altruism on the pattern of labour migration in a two-country overlapping generations model. We show that differences in degrees of altruism across countries lead to bilateral migration flows. Starting from the autarkic steady-state equilibrium, restrictions on labour migration are relaxed. In temporary post-migration equilibrium factor prices are equal across countries. We then characterize the unique stable steady-state equilibrium: both countries are populated and this equilibrium is not a Pareto improvement. Some individuals prefer to live in autarky, others in an integrated world economy.
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Volume (Year): 13 (2000)
Issue (Month): 1 ()
|Note:||Received: 6 July 1998/Accepted: 11 February 1999|
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