Abstract
In this paper we analyze the patterns of international labor migration in a two-country world where one country's production technology is superior to that of the other country. We exploit an overlapping-generations model which enables us to trace the relevant dynamic considerations. We find that in the absence of international capital movements labor will migrate from the technologically-inferior to the technologically-superior country unless the stationary autarkic equilibrium is characterized by over-investment relative to the Golden Rule and the long-run elasticity of the interest rate with respect to the technological level is sufficiently large, in which case migration will be from the technologically-superior country.
| Original language | English |
|---|---|
| Pages (from-to) | 1-12 |
| Number of pages | 12 |
| Journal | Journal of Population Economics |
| Volume | 4 |
| Issue number | 1 |
| DOIs | |
| State | Published - Mar 1991 |
| Externally published | Yes |