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Migration, Medical Aid And Welfare

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  • WATARU KUREISHI
  • KEN TABATA

Abstract

This paper constructs a simple rural‐urban migration model that explicitly incorporates the interactions between the individual's migration decision, the risk of incurring an infectious disease and unemployment. We show that providing a subsidy for health investment in urban regions in the form of medical aid does not improve individual welfare. This is because it induces further urban migration, increases the risk of infection and unemployment, and offsets completely the positive cost‐reduction effect.

Suggested Citation

  • Wataru Kureishi & Ken Tabata, 2007. "Migration, Medical Aid And Welfare," Australian Economic Papers, Wiley Blackwell, vol. 46(4), pages 329-347, December.
    • Handle: RePEc:bla:ausecp:v:46:y:2007:i:4:p:329-347
    DOI: 10.1111/j.1467-8454.2007.00323.x
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    1. Rosenzweig, Mark R. & Wolpin, Kenneth I., 1988. "Migration selectivity and the effects of public programs," Journal of Public Economics, Elsevier, vol. 37(3), pages 265-289, December.
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    3. Woods, Robert, 1985. "The Effects of Population Redistribution on the Level of Mortality in Nineteenth-Century England and Wales," The Journal of Economic History, Cambridge University Press, vol. 45(03), pages 645-651, September.
    4. Calvo, Guillermo A, 1978. "Urban Employment and Wage Determination in LDC's: Trade Unions in the Harris-Todaro Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(1), pages 65-81, February.
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    6. Quibria, M G, 1988. "Migration, Trade Unions, and the Informal Sector: A Note on Calvo," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 557-563, August.
    7. Root, Graham, 1997. "Population density and spatial differentials in child mortality in Zimbabwe," Social Science & Medicine, Elsevier, vol. 44(3), pages 413-421, February.
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