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Long-Run Migration Incentives and Migration Effects: The Case of Different Fertility Rates / Langfristige Migrationsanreize und Migrationswirkungen: Der Fall unterschiedlicher Fertilitätsraten

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  • Meier Volker

    (Department of Economics, University of Halle, Grosse Steinstr. 73, D-06108 Halle (Saale))

Abstract

In this paper the direction of the long-run migration incentive in the presence of closed borders and the long-run welfare effects of a regime change from “autarky” to “free permanent migration” are studied. A difference in birth-country specific fertility rates is treated as the final cause for the creation of migration incentives in a two-country model where the standard overlapping-generations framework is used.The results concerning both the migration incentives and the consequences of migration are driven by a Golden Rule effect, such that a shift in the stationary capital-labour ratio towards the relevant Golden Rule capital-labour ratio is beneficial for the individuals. Opening the borders for permanent migration can always lead to the equalization of labour force growth rates. A continuum of such equilibria with migration does exist, but the application of the concept of migration-stability, introduced in this paper, gives reason to the suspicion that free migration can also lead to a collapse of the emigration country’s economy.

Suggested Citation

  • Meier Volker, 1994. "Long-Run Migration Incentives and Migration Effects: The Case of Different Fertility Rates / Langfristige Migrationsanreize und Migrationswirkungen: Der Fall unterschiedlicher Fertilitätsraten," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 213(3), pages 321-338, June.
    • Handle: RePEc:jns:jbstat:v:213:y:1994:i:3:p:321-338
    DOI: 10.1515/jbnst-1994-0306
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