Migration and welfare: a very simple model
The paper presents a very simple model of migration, relying on three widely accepted points: first, labour productivity and wages in a country depend on the present average human capital; second, agents maximise their utility, so that migration decisions depend on the wage gap across economies; third, the larger the personal human capital, the higher the propensity is to migrate (ceteris paribus). The model shows that migration through its external effects always lowers the welfare in the sending country, while the effects on the receiving country can be positive or negative. As a consequence, selfish developed economies could desire a larger migration than the optimal level for a benevolent World Planner. This calls for international coordination concerning the regulation of migration flows. Copyright © 2007 John Wiley & Sons, Ltd.
Volume (Year): 19 (2007)
Issue (Month): 7 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/5102/home|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- George J. Borjas, 1994.
"The Economic Benefits from Immigration,"
NBER Working Papers
4955, National Bureau of Economic Research, Inc.
- Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001.
"Brain drain and economic growth: theory and evidence,"
Journal of Development Economics,
Elsevier, vol. 64(1), pages 275-289, February.
- Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998.
"Human Capital Depletion, Human Capital Formation, and Migration. A Blessing in a "Curse"?,"
55, Institute for Advanced Studies.
- Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1998. "Human capital depletion, human capital formation, and migration: a blessing or a "curse"?," Economics Letters, Elsevier, vol. 60(3), pages 363-367, September.
- Oded Stark & Christian Helmenstein & Alexia Prskawetz, 1998. "Human Capital Depletion, Human Capital Formation, and Migration: A Blessing in a "Curse"?," Departmental Working Papers _096, Chinese University of Hong Kong, Department of Economics.
- Edward P. Lazear, 1995.
"Culture and Language,"
NBER Working Papers
5249, National Bureau of Economic Research, Inc.
- Stark, Oded & Wang, Yong, 2002.
"Inducing human capital formation: migration as a substitute for subsidies,"
Journal of Public Economics,
Elsevier, vol. 86(1), pages 29-46, October.
- Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
- Robert Tamura, 2004.
"Human capital and economic development,"
FRB Atlanta Working Paper
2004-34, Federal Reserve Bank of Atlanta.
- Gianmarco I.P. Ottaviano & Giovanni Peri, 2004.
"Cities and Cultures,"
2004.92, Fondazione Eni Enrico Mattei.
- repec:imf:imfwpa:98/102 is not listed on IDEAS
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Schiff, Maurice, 2002. "Love thy neighbor: trade, migration, and social capital," European Journal of Political Economy, Elsevier, vol. 18(1), pages 87-107, March.
- Burda, Michael C & Wyplosz, Charles, 1991.
"Human Capital, Investment and Migration in an Integrated Europe,"
CEPR Discussion Papers
614, C.E.P.R. Discussion Papers.
- Burda, Michael & Wyplosz, Charles, 1992. "Human capital, investment and migration in an integrated Europe," European Economic Review, Elsevier, vol. 36(2-3), pages 677-684, April.
- Faini, Riccardo, 1996. "Increasing returns, migrations and convergence," Journal of Development Economics, Elsevier, vol. 49(1), pages 121-136, April.
- Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
- Reichlin, Pietro & Rustichini, Aldo, 1998. "Diverging patterns with endogenous labor migration," Journal of Economic Dynamics and Control, Elsevier, vol. 22(5), pages 703-728, May.
When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:19:y:2007:i:7:p:885-894. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.