Article ID Journal Published Year Pages File Type
10479258 Journal of Policy Modeling 2005 8 Pages PDF
Abstract
Using a small open economic model with dual labor markets, we investigate how changes in foreign workers' accessibility to labor markets affect the economy's welfare, i.e., the sum of the union's and policy authority's utilities. We assume that only a part of foreign workers can participate in labor markets due to impediments. We show that the economy's welfare increases as more unskilled foreign workers enter the secondary labor market in both cases of non-cooperation and cooperation between the union and the policy authority, while it does not always increase as more skilled foreign workers enter the primary labor market.
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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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