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Altruism and International Labour Migration

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  • Damien Gaumont

    (Crest)

  • Alice Mesnard

    (Crest)

Abstract

This paper investigates the effect of altruism on the pattern of labour migration in a two-country overlapping generations model. We show that differences in degrees of altruism across countries lead to bilateral migration flows. Starting from the autarkic steady-state equilibrium, restrictions on labour migration are relaxed. In temporary post-migration equilibrium factor prices are equal across countries. We then characterize the unique stable steady-state equilibrium: both countries are populated and this equilibrium is not a Pareto improvement. Some individuals prefer to live in autarky, others in an integrated world economy.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Damien Gaumont & Alice Mesnard, 1999. "Altruism and International Labour Migration," Working Papers 99-05, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:99-05
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    References listed on IDEAS

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    1. 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;European Society for Population Economics, vol. 9(4), pages 387-403.
    2. Rodriguez, Carlos Alfredo, 1975. "On the Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 83(5), pages 1065-1072, October.
    3. 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.
    4. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467-467.
    5. Galor, Oded & Stark, Oded, 1991. "The Impact of Differences in the Levels of Technology on International Labor Migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 4(1), pages 1-12, March.
    6. Galor, Oded, 1986. "Time preference and international labor migration," Journal of Economic Theory, Elsevier, vol. 38(1), pages 1-20, February.
    7. Jean-Pierre Vidal & Philippe Michel & Bertrand Crettez, 1998. "Time preference and capital mobility in an OLG model with land," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(1), pages 149-158.
    8. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-773, October.
    9. Kondo, Hitoshi, 1989. "International Factor Mobility and Production Technology," Journal of Population Economics, Springer;European Society for Population Economics, vol. 2(4), pages 281-299.
    10. Ethier, Wilfred J, 1985. "International Trade and Labor Migration," American Economic Review, American Economic Association, vol. 75(4), pages 691-707, September.
    11. Kochhar, Rakesh, 1992. "International Labor Migration and Domestic Labor Supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 5(2), pages 113-134, April.
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    Citations

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    Cited by:

    1. Inga Heiland & Wilhelm Kohler, 2013. "Heterogeneous Workers, Trade, and Migration," CESifo Working Paper Series 4387, CESifo Group Munich.
    2. Damien Gaumont & Charbel Macdissi, 2012. "International Migration And Uncertainty:A Non-Factor Price Equalization Overlapping Generations Model," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(2), pages 151-177.
    3. Emmanuel Thibault, 2017. "Is GDP a Relevant Social Welfare Indicator? A Savers–Spenders Theory Approach," The Japanese Economic Review, Japanese Economic Association, vol. 68(3), pages 333-351, September.

    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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