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Labor Mobility and Redistribution with Evolving Altruism: The Small Economy Case

Philippe Michel, Pierre Pestieau and Jean-Pierre Vidal
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Jean-Pierre Vidal: CREPP, University of Liege, CORE, Universite catholique de Louvain and CEME,

No 1995059, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper analyzes the issue of income redistribution in a small economy in the process of opening itself to labor migration. It assumes that only full-fledged citizens benefit from redistribution and that it takes one period for a migrant to become a citizen. The degree of redistribution measured by the level of income transfer is shown to first increase and then decrease to its steady-state value.

Date: 1995-10-01
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