International labor migration and social security: Analysis of the transition path
This paper numerically simulates a two-country overlapping-generations model to study international labor migration when the two countries are characterized by different social-security systems. The present analysis extends previous work beyond steady-state considerations. The most striking result is that in all cases considered, dynamically efficient and inefficient economies in autarkic steady-state, migration leads to temporary welfare losses in both countries. In all cases, the transition path is characterized by temporary dynamic inefficiency in one country. Copyright Springer-Verlag 2004
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Volume (Year): 17 (2004)
Issue (Month): 3 (08)
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