Coût de mobilité endogène et flexibilité du marché du travail

Endogenous Cost of mobility and labor market flexibility

Mohamed Bouzahzah and Brahim Saber

MPRA Paper from University Library of Munich, Germany

Abstract: The article examines the impact of labor mobility cost subsidy on levels of emigrations between two identical countries. The analysis is led in an OLG model with two countries. The analysis is conducted as part of an overlapping generations model with two countries. Individuals bear the cost of endogenous mobility. It depends on the number of fellow citizens of the candidate to emigration they are already present in the host country. Each individual is different by a degree of attachment to his country, the less attached are the most prescribed. We show that a grant of part of the cost of mobility in the early starters can initiate the process of emigration and reduce these costs. Other people decide to emigrate even though they are not subsidized and have a degree of attachment to their country more important than the first emigrants. The study of welfare shows that this is positive in the send country when the cost of migration is weak and it is similarly in the host country when the rate of migration is weak.

Keywords: Labor mobility; endogenous mobility cost; overlapping generations (search for similar items in EconPapers)
JEL-codes: D60 F22 H22 (search for similar items in EconPapers)
Date: 2012-06-07, Revised 2012-06-07
New Economics Papers: this item is included in nep-dge and nep-mig
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