Reference : Migration: a theoretical comparison on countries' welfare
Scientific journals : Article
Business & economic sciences : Economic systems & public economics
Migration: a theoretical comparison on countries' welfare
Zanaj, Skerdilajda mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
International Journal of Economic Theory
Yes (verified by ORBilu)
United Kingdom
[en] migration, public good, income tax, labor market rigidities.
[en] We compare the effects of migration on the production of public goods, income taxes, and on the
welfare of residents in the sending and in the receiving country. Migration is driven by income
diĀ¤erences between countries. Alternative wage adjustment scenarios are considered: fully
flexible wages; upward rigidity, and unemployment. We show that in all scenarios, emigration
is welfare detrimental for the origin country. Migration is welfare improving for the destination
country in presence of flexible wages and upward rigidity, but it has detrimental effects in
presence of unemployment.

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