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Migration and welfare: a very simple model

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  • Roberto Cellini

    (University of Catania, Corso Italia, Catania, Italy)

Abstract
The paper presents a very simple model of migration, relying on three widely accepted points: first, labour productivity and wages in a country depend on the present average human capital; second, agents maximise their utility, so that migration decisions depend on the wage gap across economies; third, the larger the personal human capital, the higher the propensity is to migrate (ceteris paribus). The model shows that migration through its external effects always lowers the welfare in the sending country, while the effects on the receiving country can be positive or negative. As a consequence, selfish developed economies could desire a larger migration than the optimal level for a benevolent World Planner. This calls for international coordination concerning the regulation of migration flows. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Roberto Cellini, 2007. "Migration and welfare: a very simple model," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(7), pages 885-894.
    • Handle: RePEc:wly:jintdv:v:19:y:2007:i:7:p:885-894
    DOI: 10.1002/jid.1330
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    References listed on IDEAS

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    Cited by:

    1. Bilal Rafi, 2015. "The Employment and Occupational Outcomes of Indian Male Migrants in the Australian Labour Market," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(1), pages 113-129.
    2. Phil Lewis & Bilal Rafi, 2014. "Earnings of Indian Male Migrants in the Australian Labour Market," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(3), pages 257-275.
    3. Kronenberg, Kristin & Carree, Martin, 2010. "Job and residential mobility in the Netherlands: the influence of human capital, household composition and location," MPRA Paper 25840, University Library of Munich, Germany.
    4. Vikhrov Dmytro, 2013. "Welfare Effects of Labor Migration," CERGE-EI Working Papers wp491, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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