Migrants in a Guest-Worker System: A Utility-Maximizing Approach

Slobodan Djajic

No 275206, Queen's Institute for Economic Research Discussion Papers from Queen's University - Department of Economics

Abstract: This paper examines the behavior of utility-maximizing migrants in a system of guest-worker migration. Their pattern of leisure and commodity consumption at honie and abroad is analysed and related to those chosen by the natives of the host country and the non-migrants of the source country. The paper also highlights an important distinction between permanent and temporary migration. While a permanent migrant is primarily interested in the real-wage differential between countries of immigration and emigration, a guest worker's decision to migrate depends on both the real and the nominal differential. The relative importance of the nominal differential is found to be inversely related to the degree of concavity of his instantaneous utility function.

Keywords: Financial Economics; International Relations/Trade (search for similar items in EconPapers)
Pages: 24
Date: 1986-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/275206/files/QUEENS-IER-PAPER-661.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:queddp:275206

DOI: 10.22004/ag.econ.275206

Access Statistics for this paper

More papers in Queen's Institute for Economic Research Discussion Papers from Queen's University - Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().