The choice to migrate: where to work and where to live

Giorgio Basevi () and A. Tarozzi

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: In this paper we consider an overlapping generation model in which people, born in two different countries, decide where to spend their working period of life, and where to retire after it. The two countries differ in technology and quality of life. The northern country, N, is more productive, while in the southern country, S, people enjoy a better quality of life. Locational preferences are influenced not only by objective criteria like climate, pollution, congestion , but also by cultural factors. Thus we assume that people prefer to live in their country of origin.It will be shown that, under plausible assumptions, locational decisions cause migration from S to N, but the importance of this phenomenon depends on how locational preferences are made endogenous. In Section 2 we describe the production side of our model, and in Section 3 its consumption side. We then examine the influence of locational preferences that are taken as exogenous, in Section 4, and made endogenous, at least for their subjective component, in Section 5.

Date: 1997-09
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:289

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