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• W2017357059 abstract "This paper demonstrates that a theoretical framework developed in booming sector economics can be fruitfully applied to the case of international migration for temporary employment. Migration to an overseas market brings about as does the discovery of an oil or gas field the resource movement effect and the spending effect in the country of origin. If the tradeables sector is also the industrialized sector the resource movement effect is to de-industrialize the economy. The extent of de-industrialization depends further on when the spending of overseas earnings takes place. If the spending of overseas earnings takes place in the 1st period when migrants are still abroad it causes further de-industrialization. Since they will need to be reabsorbed in the domestic market when they return home the change in employment over the periods is greater in the tradeables sector than in the nontradeables sector. This contrasts with the case where the spending takes place in the 2nd period when migrants return home. In this case a greater change in employment is imposed on the nontradeables sector. In this simple model with costless employment adjustment there is no reason for the government to regulate when the spending should take place on the grounds of its effect on employment. If however adjustment costs are positive and different between the 2 sectors it matters to the government when the spending of overseas earnings takes place. This paper has also demonstrated that immiserizing migration can occur even though the countrys international terms of trade are given and there are no price distortions. This can happen because instead of producing commodities at home migrants now exchange their labor services for tradeables with the rest of the world and they then trade tradeables for nontradeables with nonmigrants. It is the resulting change in the price of nontradeables which can deteriorate the countrys potential welfare as well as the welfare of nonmigrants. In the case of migration the decision to migrate is made by migrants independently of its welfare effect on nonmigrants. If migrants become better off with migration then it will take place even though nonmigrants become worse off and the countrys potential welfare decreases as a result. (authors)" @default.
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• W2017357059 date "1986-09-15" @default.
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• W2017357059 title "Migration Abroad for Temporary Employment and Its Effects on the Country of Origin" @default.
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• W2017357059 doi "https://doi.org/10.11130/jei.1986.1.2.132" @default.
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