Reducing the Inflow of Unskilled Foreign Workers

Akira Shimada

South-Eastern Europe Journal of Economics, 2004, vol. 2, issue 1, 85-96

Abstract: This paper investigates the effects of minimum wages on the inflow of unskilled foreign workers in a two-country macroeconomic model. We assume that all workers are unskilled and workers move from a country of lower expected real-consumption wages to a country of higher ones. This paper shows that, in cases where minimum wages are not introduced, workers move from a country with a larger domestic labor force to a country with a smaller one. If minimum wages are introduced into a country with a smaller domestic labor force, such migration can probably be reduced.

Keywords: International migration of unskilled labor; Minimum wages; Two-country macroeconomic model (search for similar items in EconPapers)
JEL-codes: F22 F41 J38 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:seb:journl:v:2:y:2004:i:1:p:85-96

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