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Coût de mobilité endogène et flexibilité du marché du travail
[Endogenous Cost of mobility and labor market flexibility]

Author

Listed:
  • Bouzahzah, Mohamed
  • Saber, Brahim

Abstract

The article examines the impact of labor mobility cost subsidy on levels of emigrations between two identical countries. The analysis is led in an OLG model with two countries. The analysis is conducted as part of an overlapping generations model with two countries. Individuals bear the cost of endogenous mobility. It depends on the number of fellow citizens of the candidate to emigration they are already present in the host country. Each individual is different by a degree of attachment to his country, the less attached are the most prescribed. We show that a grant of part of the cost of mobility in the early starters can initiate the process of emigration and reduce these costs. Other people decide to emigrate even though they are not subsidized and have a degree of attachment to their country more important than the first emigrants. The study of welfare shows that this is positive in the send country when the cost of migration is weak and it is similarly in the host country when the rate of migration is weak.

Suggested Citation

  • Bouzahzah, Mohamed & Saber, Brahim, 2012. "Coût de mobilité endogène et flexibilité du marché du travail
    [Endogenous Cost of mobility and labor market flexibility]
    ," MPRA Paper 38982, University Library of Munich, Germany, revised 07 Jun 2012.
  • Handle: RePEc:pra:mprapa:38982
    as

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    File URL: https://mpra.ub.uni-muenchen.de/38982/1/MPRA_paper_38982.pdf
    File Function: original version
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    References listed on IDEAS

    as
    1. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
    2. Hélène Erkel-Rousse, 1997. "Degré de flexibilité des marchés du travail, ajustement à des chocs asymétriques et union monétaire européenne," Économie et Prévision, Programme National Persée, vol. 128(2), pages 79-100.
    3. Mohamed Bouzahzah & Frédéric Docquier & Oliver Paddison, 2002. "Retraites, croissance et inégalités en présence d'individus myopes," Economie & Prévision, La Documentation Française, vol. 155(4), pages 31-44.
    4. Rickard Sandell, 2008. "A Social Network Approach to Spanish Immigration: An Analysis of Immigration into Spain 1998-2006," Working Papers 2008-33, FEDEA.
    5. I. Ruyssen & G. Everaert & G. Rayp, 2011. "Determinants of International Migration to the OECD in a Three-Way Dynamic Panel Framework," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/696, Ghent University, Faculty of Economics and Business Administration.
    6. Fertig, Michael & Schmidt, Christoph M., 2002. "Mobility within Europe – What do we (still not) know?," IZA Discussion Papers 447, Institute for the Study of Labor (IZA).
    7. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Labor mobility; endogenous mobility cost; overlapping generations;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • D60 - Microeconomics - - Welfare Economics - - - General

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