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Reducing the Inflow of Unskilled Foreign Workers

Author

Listed:
  • Akira Shimada

    (Faculty of Economics, Nagasaki University)

Abstract

This paper investigates the effects of minimum wages on the inflow of unskilled foreign workers in a two-country macroeconomic model. We assume that all workers are unskilled and workers move from a country of lower expected real-consumption wages to a country of higher ones. This paper shows that, in cases where minimum wages are not introduced, workers move from a country with a larger domestic labor force to a country with a smaller one. If minimum wages are introduced into a country with a smaller domestic labor force, such migration can probably be reduced.

Suggested Citation

  • Akira Shimada, 2004. "Reducing the Inflow of Unskilled Foreign Workers," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 2(1), pages 85-96.
    • Handle: RePEc:seb:journl:v:2:y:2004:i:1:p:85-96
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    File URL: http://www.asecu.gr/Seeje/issue02/shimada.pdf
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    References listed on IDEAS

    as
    1. Zervoyianni, Athina, 1997. "Monetary Policy Games and Coalitions in a Two-Country Model with Unionised Wage Setting," Oxford Economic Papers, Oxford University Press, vol. 49(1), pages 57-76, January.
    2. Agiomirgianakis, George M., 1998. "Monetary Policy Games and International Migration of Labor in Interdependent Economies," Journal of Macroeconomics, Elsevier, vol. 20(2), pages 243-266, April.
    3. Henrik Jensen, 1993. "International monetary policy cooperation in economies with centralized wage setting," Open Economies Review, Springer, vol. 4(3), pages 269-285, September.
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    Cited by:

    1. Shimada, Akira, 2005. "Foreign worker participation in labor markets and the economy's welfare," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 355-362, April.

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    More about this item

    Keywords

    International migration of unskilled labor; Minimum wages; Two-country macroeconomic model;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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