Is a Policy of Free Movement of Workers Sustainable?

Reference : Is a Policy of Free Movement of Workers Sustainable?


	Document type :	E-prints/Working papers : Already available on another site
	Discipline(s) :	Business & economic sciences : International economics
	To cite this reference:	http://hdl.handle.net/10993/18423

Title :	Is a Policy of Free Movement of Workers Sustainable?
Language :	English
Author, co-author :	Picard, Pierre M [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
	Worrall, Tim []
Publication date :	Mar-2014
Peer reviewed :	No
Keywords :	[en] labor market flexibility ; migration ; sustainable plan
Abstract :	[en] This paper studies the costs and benefits of the adoption of the policy of free movement for workers. For the countries to agree on uncontrolled movement of workers, the short run costs must be outweighed by the long term benefits that result from better labor market flexibility and income smoothing. We show that such policies are less likely to be adopted when workers are impatient and less risk averse workers, when production technologies display decreasing returns and when countries trade a share of their products.
Permalink :	http://hdl.handle.net/10993/18423
source URL :	http://ftp.iza.org/dp8035.pdf

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