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Altruism and international labour migration

  • Damien Gaumont

    ()

    (UniversitÊ Paris 2 and ERMES, CNRS, UPRES-A 7017, 92, rue d'Assas, F-75270 Paris Cedex 06, France CREST, 15, Boulevard G. PÊri, F-92 245 Malakoff Cedex, France)

  • Alice Mesnard

    ()

    (UniversitÊ Paris 2 and ERMES, CNRS, UPRES-A 7017, 92, rue d'Assas, F-75270 Paris Cedex 06, France CREST, 15, Boulevard G. PÊri, F-92 245 Malakoff Cedex, France)

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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Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 13 (2000)
Issue (Month): 1 ()
Pages: 113-126

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Handle: RePEc:spr:jopoec:v:13:y:2000:i:1:p:113-126
Note: Received: 6 July 1998/Accepted: 11 February 1999
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  1. Galor, Oded, 1986. "Time preference and international labor migration," Journal of Economic Theory, Elsevier, vol. 38(1), pages 1-20, February.
  2. CRETTEZÂ , Bertrand & MICHELÂ , Philippe & VIDALÂ , Jean-Pierre, 1995. "Time Preference and Labour Migration in an OLG Model with Land and Capital," CORE Discussion Papers 1995046, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  4. Galor, Oded & Stark, Oded, 1991. "The Impact of Differences in the Levels of Technology on International Labor Migration," Journal of Population Economics, Springer, vol. 4(1), pages 1-12, March.
  5. Karayalcin, Cem, 1994. "Temporary and permanent migration with and without an immobile factor," Journal of Development Economics, Elsevier, vol. 43(2), pages 197-215, April.
  6. Rodriguez, Carlos Alfredo, 1975. "On the Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 83(5), pages 1065-72, October.
  7. Ethier, Wilfred J, 1985. "International Trade and Labor Migration," American Economic Review, American Economic Association, vol. 75(4), pages 691-707, September.
  8. Kondo, Hitoshi, 1989. "International Factor Mobility and Production Technology," Journal of Population Economics, Springer, vol. 2(4), pages 281-99.
  9. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
  10. Kochhar, Rakesh, 1992. "International Labor Migration and Domestic Labor Supply," Journal of Population Economics, Springer, vol. 5(2), pages 113-34, April.
  11. Jean-Pierre Vidal & Philippe Michel & Bertrand Crettez, 1998. "Time preference and capital mobility in an OLG model with land," Journal of Population Economics, Springer, vol. 11(1), pages 149-158.
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