The impact of differences in the levels of technology on international labor migration

Oded Galor*, Oded Stark

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)1-12
Number of pages12
JournalJournal of Population Economics
Volume4
Issue number1
DOIs
StatePublished - Mar 1991
Externally publishedYes

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