An Equilibrium Model of Guest-Worker Migration

Slobodan Djajic and Ross Milbourne

No 275203, Queen's Institute for Economic Research Discussion Papers from Queen's University - Department of Economics

Abstract: This paper examines the problem of guest-worker migration from an economy populated by identical, utility-maximizing individuals with finite working lives. The decision to migrate, the rate of saving while abroad, as well as the length of a migrant's stay in the foreign country, are all viewed as part of a solution to an intertemporal optimization problem. In addition to studying the microeconomic aspects of temporary migration, the paper analyses the determinants of the equilibrium flow of migrants, the corresponding domestic wage, and the level of welfare enjoyed by a typical worker. Effects of an emigration tax are also investigated.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 28
Date: 1985-06
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:queddp:275203

DOI: 10.22004/ag.econ.275203

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