Unemployment, International Migration and Profit-Sharing

  • Chisato Yoshida
  • Alan D. Woodland

Abstract

We develop the standard (two-country, one-good, two-factor) model of international immigration, in which we have unemployment in the host (capital abundant) country and in the foreign (labor abundant) country. Our main result is that the introduction of a profit-sharing plan by the host country causes: (1) Employment of domestic labor increases, (2) immigration decreases, (3) the domestic (foreign) country’s welfare rises (falls), and, under certain circumstances, (4) global welfare rises in the presence of international capital immobility.

Keywords

Migration Income Cond Alan 

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Copyright information

© Chisato Yoshida and Alan D.Woodland 2005

Authors and Affiliations

  • Chisato Yoshida
  • Alan D. Woodland

There are no affiliations available

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