
International Migration of Labor, Efficiency Wages, and Monetary Policies
International Migration of Labor, Efficiency Wages, and Monetary Policies
- Akira Shimada
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제22권 제1호
- 등재여부 : KCI등재
- 2007.03
- 50 - 68 (19 pages)
Assuming a symmetric two-country economy with labor migration and efficiency wages, we investigate which of the two regimes, non-cooperation or intergovernment cooperation, is advantageous. We show that not only the utility of the policy authority but also that of the workers is higher under inter-government cooperation than under non-cooperation, provided that migration flows are sufficiently sensitive to changes in real-consumption wage differentials. Our result is in contrast to the one derived by Agiomirgianakis (1998); according to him, in a two-country economy with labor migration and labor unions, only the policy authority can attain the higher utility under inter-government cooperation.
Ⅰ. Introduction
Ⅱ. The Model
Ⅲ. Non-Cooperation
Ⅳ. Inter-government Cooperation
Ⅴ. Comparison of the Two Regimes
Ⅵ. Conclusions