Article ID Journal Published Year Pages File Type
963291 Journal of International Economics 2006 14 Pages PDF
Abstract
This paper analyzes the allocation of two types of individuals differentiated by talent between two countries where they choose to be workers or entrepreneurs. An equilibrium with international migration exists when countries' talent endowments are sufficiently different. It is consistent with one-way or two-way migration whether individuals are entrepreneurs or workers. Although allowing migration increases domestic welfare in one country and decreases it in the other, it is always supported by majority voting in both countries.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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