Temporary Equilibria of Migration
In contrast to the contents of the previous chapters we will now analyse migration problems in an equilibrium framework. It is intuitively clear that all economic implications concerning aggregate migration behaviour should be based on an underlying equilibrium concept. For let us consider, as a thought experiment, a set of potential migrants who are attracted by a particular country. After a lot of them moved into this country the economic conditions there might change considerably and this might induce the remaining potential migrants no longer to go to this country. To deal with this problem adequately one has to take account not only of migration supply into a country but also of migration demand in a country. Both determine the economic conditions and aggregate immigration streams simultaneously in an equilibrium.
KeywordsLabour Supply Wage Rate Temporary Equilibrium Potential Migrant Migration Decision
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