Minimum Wage, Unemployment and International Migration

Slobodan Djajic

Working Paper from Economics Department, Queen's University

Abstract: This paper develops a two-country model of international migration to study the implications of opening a minimum wage economy to migration. An inflow of foreign labour may lower the income of the country's native factors of production. Moreover, while an increase in the minimum wage reduces employment, it may also lead to substitution of foreign for native workers in the remaining positions of employment. Finally, the paper studies the effects of capital accumulation on migration, the host country's unemployment rate, and worker's income in the two economies.

Pages: 24 pages
Date: 1985
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:605

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