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In this paper, we explore employers' decisions regarding the employment of legal and illegal immigrants in the presence of endogenous adjustment cost, minimum wages and an enforcement budget. We show that increasing the employment of legal foreign workers will increase the number of illegal...
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This paper examines how immigrants’ optimal migration duration in the host country responds to the purchasing power parity (ppp) and relative wages between the host and source countries. A theoretical model of joint migration duration and saving decisions reveals that the optimal migration...
Persistent link: https://www.econbiz.de/10009758597
Mobile workers involve flows of labor and human capital and contribute to a more efficient allocation of resources. However, migration also changes relative wages, alters the distribution of skills and affects equality in the receiving society. The paper suggests that skilled immigration...
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Borjas (1987, 1991 and 1994) developed the self-selection theory, applying Roy's model (1951) to migration studies. He … the individual investment decision theory (Human Capital theory), applying simulated data by Monte-Carlo method. The … theory of individual investment decisions allows us to analyze self-selection patterns across differences in wages and …
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