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Inheritance, land, and capital mobility linked to labour mobility

  • Damien Gaumont


    (Université Paris 2 and ERMES, CNRS, UPRES-A 7017, 92, rue d'Assas, 75270 Paris Cedex 06, France)

  • Alice Mesnard


    (ARQADE 21 Allée de Brienne, 31000 Toulouse, France and Université Toulouse 1)

This paper presents a two-country migration model, following Galor (1986), in which the world population consists of two types individuals. Individuals with a high (low) degree of altruism give to their children a high (low) level of bequest. Production uses three inputs: immobile land, mobile labour, and capital. Capital mobility is linked to labour mobility since individuals move with their inheritance. The model shows that countries are homothetic in the post-migration equilibrium with equal factor prices and equal densities of population. Migration flows are bilateral and the number of each type of migrants is uniquely determined. In some cases, migration leads to a Pareto improvement in both countries.

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

Volume (Year): 14 (2001)
Issue (Month): 4 ()
Pages: 669-687

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Handle: RePEc:spr:jopoec:v:14:y:2001:i:4:p:669-687
Note: Received: 8 July 1999/Accepted: 7 April 2000
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  1. Galor, Oded, 1992. "The Choice of Factor Mobility in a Dynamic World," Journal of Population Economics, Springer, vol. 5(2), pages 135-44, April.
  2. Knowles, James C. & Anker, Richard, 1981. "An analysis of income transfers in a developing country : The case of Kenya," Journal of Development Economics, Elsevier, vol. 8(2), pages 205-226, April.
  3. Barro, Robert J., 1974. "Are Government Bonds Net Wealth?," Scholarly Articles 3451399, Harvard University Department of Economics.
  4. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
  5. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June.
  6. Donald Cox & Zekeriya Eser & Emmanuel Jimenez, 1996. "Motives for Private Transfers over the Life Cycle: An Analytical Framework and Evidence for Peru," Boston College Working Papers in Economics 327., Boston College Department of Economics.
  7. William G. Gale & John Karl Scholz, 1994. "Intergenerational Transfers and the Accumulation of Wealth," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 145-160, Fall.
  8. Kondo, Hitoshi, 1989. "International Factor Mobility and Production Technology," Journal of Population Economics, Springer, vol. 2(4), pages 281-99.
  9. Faini,Riccardo C. & de Melo,Jaime & Zimmermann,Klaus (ed.), 1999. "Migration," Cambridge Books, Cambridge University Press, number 9780521662338.
  10. Kochhar, Rakesh, 1992. "International Labor Migration and Domestic Labor Supply," Journal of Population Economics, Springer, vol. 5(2), pages 113-34, April.
  11. Galor, Oded, 1986. "Time preference and international labor migration," Journal of Economic Theory, Elsevier, vol. 38(1), pages 1-20, February.
  12. Jean-Pierre Vidal & Philippe Michel & Bertrand Crettez, 1996. "Time preference and labour migration in an OLG model with land and capital," Journal of Population Economics, Springer, vol. 9(4), pages 387-403.
  13. 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.
  14. repec:oup:restud:v:60:y:1993:i:1:p:35-52 is not listed on IDEAS
  15. 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.
  16. Darvish-Lecker, Tikva & Kahana, Nava, 1992. "The Destination Decision of Political Migrants: An Economic Approach," Journal of Population Economics, Springer, vol. 5(2), pages 145-53, April.
  17. 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.
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