Reference : Is a Policy of Free Movement of Workers Sustainable?
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Business & economic sciences : International economics
Is a Policy of Free Movement of Workers Sustainable?
Picard, Pierre M mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Worrall, Tim mailto []
[en] labor market flexibility ; migration ; sustainable plan
[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.

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