Keywords :
migration, public good, income tax, labor market rigidities.
Abstract :
[en] We compare the effects of migration on the production of public goods, income taxes, and on the
<br />welfare of residents in the sending and in the receiving country. Migration is driven by income
<br />di¤erences between countries. Alternative wage adjustment scenarios are considered: fully
<br />flexible wages; upward rigidity, and unemployment. We show that in all scenarios, emigration
<br />is welfare detrimental for the origin country. Migration is welfare improving for the destination
<br />country in presence of flexible wages and upward rigidity, but it has detrimental effects in
<br />presence of unemployment.
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