Time preference, international migration, and social security
This paper analyzes both the formation of long-run migration incentives and the consequences of a regime change from "autarky" to "free migration" in an overlapping-generations framework with two countries. Under autarky the countries may differ with respect to their aggregate savings rate or with respect to their pension-wage ratio. It is shown that an individual prefers to live in a country where the capital-labor ratio is close to the Golden Rule level and where his characteristics are relatively scarce. Both the migration incentives and the consequences of free migration are determined by these two effects.
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Volume (Year): 13 (2000)
Issue (Month): 1 ()
|Note:||Received: 2 March 1998/Accepted: 10 February 1999|
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- CRETTEZÂ , Bertrand & MICHELÂ , Philippe & VIDALÂ , Jean-Pierre, 1995.
"Time Preference and Labour Migration in an OLG Model with Land and Capital,"
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- Kondo, Hitoshi, 1989. "International Factor Mobility and Production Technology," Journal of Population Economics, Springer, vol. 2(4), pages 281-99.
- Scholten, Ulrich & Thum, Marcel, 1996. " Public Pensions and Immigration Policy in a Democracy," Public Choice, Springer, vol. 87(3-4), pages 347-61, June.
- 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.
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