IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v16y2007i1p1-29.html
   My bibliography  Save this article

International migration in an equilibrium matching model

Author

Listed:
  • Masaru Sasaki

Abstract

This paper considers the effects of labor mobility in a specific factors model when unemployment arises for matching-theoretic reasons. Immigration raises the welfare of domestic workers even though the increasing labor supply decreases wages if firms create more jobs in response to inflows of immigrants. The determinants of the patterns of labor movements are considered in a two-country model. Unemployed workers decide whether to leave their country not only on the basis of the wage differential, but also in response to the difference in unemployment rates between the two countries. The two countries can diverge in equilibrium in the sense that one country exhibits a high wage but a high unemployment rate whereas the other exhibits a low wage but a low unemployment rate. It is possible to see movements of workers from a high-wage country to a low-wage country if the unemployment rate is higher in the former than in latter and wages are not high enough to compensate for the high level of unemployment in the high-wage country.

Suggested Citation

  • Masaru Sasaki, 2007. "International migration in an equilibrium matching model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(1), pages 1-29.
  • Handle: RePEc:taf:jitecd:v:16:y:2007:i:1:p:1-29
    DOI: 10.1080/09638190601165392
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601165392
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. vom Berge, Philipp, 2011. "Search Unemployment and New Economic Geography," University of Regensburg Working Papers in Business, Economics and Management Information Systems 454, University of Regensburg, Department of Economics.
    2. Christian Lumpe & Benjamin Weigert, 2009. "Immigration Policy, Equilibrium Unemployment, and Underinvestment in Human Capital," LABOUR, CEIS, vol. 23(1), pages 97-130, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:16:y:2007:i:1:p:1-29. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.