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International Migration, Profit-Sharing and National Welfare

In: The Economics of Illegal Immigration

Author

Listed:
  • Chisato Yoshida
  • Alan D. Woodland

Abstract

We develop a two-country model of international migration with unemployment in order to examine the welfare effects of a profit-sharing scheme implemented in the host country. Assuming the absence of international capital mobility, our results show that an increase in the rate of profit-sharing has the following effects. (1) It reduces the wages of domestic and migrant workers who compete with each other for employment; (2) it increases the number of immigrants in the host country; (3) it lowers unemployment rates in both countries; (4) it raises the profits of domestic firms; and (5) it increases domestic and foreign welfare.

Suggested Citation

  • Chisato Yoshida & Alan D. Woodland, 2005. "International Migration, Profit-Sharing and National Welfare," Palgrave Macmillan Books, in: The Economics of Illegal Immigration, chapter 9, pages 143-162, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-51488-1_9
    DOI: 10.1057/9780230514881_9
    as

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