A Small-Open-Economy Analysis of Migration

Karnit Flug, Zvi Hercowitz () and Anat Levi

No 275591, Foerder Institute for Economic Research Working Papers from Tel-Aviv University > Foerder Institute for Economic Research

Abstract: The standard small-open-economy framework is extended to incorporate migration and job search. The model has a dynamic optimization setup with migration costs, where a simple mechanism of job search interacts with the migration decision. The balanced-growth population size is undetermined in this model. However, when conditioned on the current population size, the expected long-run population is finite. The developed framework is used to analyze, theoretically and quantitatively, the effects of an exogenous immigration influx of the magnitude of the ongoing influx to Israel from the C.I.S. The outcome of the model is a set of paths for endogenous emigration, domestic population size, and unemployment.

Keywords: Financial Economics; International Relations/Trade (search for similar items in EconPapers)
Pages: 27
Date: 1994-06
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https://ageconsearch.umn.edu/record/275591/files/TEL-AVIV-FSWP-228.pdf (application/pdf)

Related works:
Working Paper: A Small Open Economy Analysis of Migration (1994)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:isfiwp:275591

DOI: 10.22004/ag.econ.275591

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