Labor market globalization under multilateral economic partnership agreements

2015 Fiscal Year Final Research Report

• Project/Area Number: 25380340
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Chukyo University
• Principal Investigator: Kondoh Kenji 中京大学, 経済学部, 教授 (70267897)
• Project Period (FY): 2013-04-01 – 2016-03-31
• Keywords: 国際労働移動 / 移民規制政策

Outline of Final Research Achievements

We investigate the economy of a small country that exports skilled labor to more-developed countries and simultaneously imports unskilled labor from less-developed countries. If this country adopts an optimal immigration policy by imposing an income tax on immigrants that maximizes national income, skills formation will be negatively affected. Moreover, under certain conditions, we can assert that the wage gap between domestic skilled/unskilled workers will increase owing to the restriction on foreign unskilled workers.
We also build a simple three-country model where two rich countries with different immigration policies receive immigrants from a third, developing country. We consider the effects of economic integration in the form of the free mobility of native workers: we show that under certain conditions, the wage gap between the two developed countries is crucial, whether the integration outcome is win-win or lose-lose.

Free Research Field

国際経済学