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Transfer Arrangement, Labor Migration and Community Welfare

Daichi Yamada

No 272, Discussion paper series. A from Graduate School of Economics and Business Administration, Hokkaido University

Abstract: An informal transfer arrangement within a community redistributes incomes. While this may improve the welfare by mitigating the income inequality, it will also a ect households’ decisions on labor migration, a way to expand incomes. This paper theoretically examines the transfer arrangement that maximize the community welfare, taking into account its e ect on endogenous labor migration decisions. The result shows that the welfare is maximized when the redistribution through transfer is limited. It also presents an alternative explanation for empirical findings of limited transfer arrangement.

Keywords: Informal transfer; Labor migration (search for similar items in EconPapers)
Pages: 11 pages
Date: 2014-05
New Economics Papers: this item is included in nep-mig
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http://hdl.handle.net/2115/55296 (text/html)
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Persistent link: https://EconPapers.repec.org/RePEc:hok:dpaper:272

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