Analysis and Mathematical Modelling of International Labor Migration

Alexandra Andreevna Lukina () and Alexander Vitalievich Prasolov ()

Administrative Consulting, issue 10

Abstract: In this paper we propose a dynamic model of one-way migration flow. The model is constructed under the hypothesis that immigration grows when the labor productivity of the recipient country increases in comparison with the labor productivity of the donor country. Theoretical and empirical arguments for subsistence of this rule are presented. Migrant’s remittances are included in the model framework. It is assumed that remittances are used for both consumption and capital investment in the donor country. If the native populations of the recipient and the donor countries are constant, the model is mathematically represented by the third order nonlinear autonomous system of differential equations. The system steady state is found, the economic interpretation of the equilibrium is given. Within the bounds of the model the impact of migration on recipient and donor countries economies is analyzed. Gradual equalizing of the donor country labor productivity with the recipient country labor productivity could be revealed.

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