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Sectoral labor supply shortage is a cause of concern in many OECD countries and has raised support for immigration as a potential remedy. In this paper, we derive a general equilibrium model with overlapping generations, where natives require a compensating wage differential for working in one...
Persistent link: https://www.econbiz.de/10009741042
In this chapter, we analyze immigration and its effect on urban and regional economies focusing on productivity and labor markets. While immigration policies are typically national, the effects of international migrants are often more easily identified on local economies. The reason is that...
Persistent link: https://www.econbiz.de/10014025309
An extensive literature has documented the incentive effect of emigration prospects in terms of human capital accumulation in origin countries. Much less attention has been paid to the impact on specific educational choices. We provide some evidence from the behavior of students at the...
Persistent link: https://www.econbiz.de/10014551868
capital. Yet a strictly positive probability of migration to a richer country, by raising both the level of human capital … migration policy the welfare of all workers is higher than in the absence of this policy. …
Persistent link: https://www.econbiz.de/10010292740
A theory is developed of labor migration that is prompted by a desire to avoid social humiliation. In a general … equilibrium framework it is shown that as long as migration can reduce humiliation sufficiently, migration will occur even between … two identical economies. Migration increases the number of individuals who choose to perform degrading jobs and …
Persistent link: https://www.econbiz.de/10010294009
migrants and natives under both migration and trade. We use a general equilibrium model of migration, human capital and social … natives. Trade and both migration solutions reduce inequality between the populations of the two countries by the same amount …. In addition, trade and migration are not equivalent if social capital is present: the highest welfare is obtained with …
Persistent link: https://www.econbiz.de/10010262028
We introduce the idea that informational cascades can explain the observed regularity that emigrants from the same locations also tend to choose the same foreign locations. Thus informational cascades generate herd behavior. Herd behavior is compared with the network externalities explanation of...
Persistent link: https://www.econbiz.de/10010262802
In this paper we develop a neoclassical growth model that aggregates different types of labor skills from strict complementarity to perfect substitution. After having derived general balanced growth conditions and developed explicit growth paths for capital and aggregate labor force, the model...
Persistent link: https://www.econbiz.de/10010272597
This work focuses on a temporary guest-worker-type migration of individuals from the middle class of the wealth …
Persistent link: https://www.econbiz.de/10010274747
In this note, we show that labour market integration can be a double-edged sword. In the presence of local human capital externalities, integration and the ensuing agglomeration of skilled labour can cause a decline in human capital and the total wage sum (net of education costs). In particular,...
Persistent link: https://www.econbiz.de/10010274986