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Altruism and International Labour Migration

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  • Damien Gaumont

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  • Alice Mesnard

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Abstract

This paper investigates the effect of altruism on the pattern of labour migration in a two-country overlapping generations model. We show that differences in degrees of altruism across countries lead to bilateral migration flows. Starting from the autarkic steady-state equilibrium, restrictions on labour migration are relaxed. In temporary post-migration equilibrium factor prices are equal across countries. We then characterize the unique stable steady-state equilibrium: both countries are populated and this equilibrium is not a Pareto improvement. Some individuals prefer to live in autarky, others in an integrated world economy.
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Suggested Citation

  • Damien Gaumont & Alice Mesnard, 1999. "Altruism and International Labour Migration," Working Papers 99-05, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:99-05
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    References listed on IDEAS

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    Cited by:

    1. Emmanuel Thibault, 2001. "Labor immigration and long-run welfare in a growth model with heterogenous agents and endogenous labor supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 391-407.
    2. Heiland, Inga & Kohler, Wilhelm, 2022. "Heterogeneous workers, trade, and migration," European Economic Review, Elsevier, vol. 144(C).
    3. Damien Gaumont & Alice Mesnard, 2001. "Inheritance, land, and capital mobility linked to labour mobility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(4), pages 669-687.
    4. Damien Gaumont & Charbel Macdissi, 2012. "International Migration And Uncertainty:A Non-Factor Price Equalization Overlapping Generations Model," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(2), pages 151-177.
    5. Emmanuel Thibault, 2017. "Is GDP a Relevant Social Welfare Indicator? A Savers—Spenders Theory Approach," The Japanese Economic Review, Springer, vol. 68(3), pages 333-351, September.

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    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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