A general equilibrium model of guest-worker migration: the source-country perspective
Djajic, S.; Milbourne, R.
Journal of International Economics 25: 335-351
1988
ISSN/ISBN: 0022-1996 PMID: 12342550 DOI: 10.1016/0022-1996(88)90059-1Document Number: 365144
"This paper examines the problem of guest-worker migration from an economy populated by identical, utility-maximizing individuals with finite working lives. The decision to migrate, the rate of saving while abroad, as well as the length of a migrant's stay in the foreign country, are all viewed as part of a solution to an intertemporal optimization problem. In addition to studying the microeconomic aspects of temporary migration, the paper analyses the determinants of the equilibrium flow of migrants, the corresponding domestic wage, and the level of welfare enjoyed by a typical worker. Effects of an emigration tax are also investigated."