Overseas employment and remittances to a dual economy
Overseas employment and remittances to a dual economy
Overseas employment has become more commonplace, and remittances have increased in similar proportions. For poor countries, remittances often substantially influence domestic expenditures and real exchange rates. We study overseas employment, remittances and domestic underemployment in a simple general equilibrium model with a non-traded good and minimum wage. The influence of population growth, rural productivity, and family altruism are examined. If remittances per migrant exceed domestic productivity then multiple equilibria may occur exhibiting high or low overseas employment. We discuss how the equilibrium with highest overseas employment conditionally Pareto dominates the other equilibria, and analyse policy co-ordination
509-534
McCormick, Barry
6030c745-bb61-4e93-ab8f-91e676281e08
Wahba, Jackline
03ae9304-c329-40c6-9bfc-d91cfa9e7164
2000
McCormick, Barry
6030c745-bb61-4e93-ab8f-91e676281e08
Wahba, Jackline
03ae9304-c329-40c6-9bfc-d91cfa9e7164
McCormick, Barry and Wahba, Jackline
(2000)
Overseas employment and remittances to a dual economy.
Economic Journal, 110 (463), .
(doi:10.1111/1468-0297.00535).
Abstract
Overseas employment has become more commonplace, and remittances have increased in similar proportions. For poor countries, remittances often substantially influence domestic expenditures and real exchange rates. We study overseas employment, remittances and domestic underemployment in a simple general equilibrium model with a non-traded good and minimum wage. The influence of population growth, rural productivity, and family altruism are examined. If remittances per migrant exceed domestic productivity then multiple equilibria may occur exhibiting high or low overseas employment. We discuss how the equilibrium with highest overseas employment conditionally Pareto dominates the other equilibria, and analyse policy co-ordination
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Published date: 2000
Organisations:
Economics
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Local EPrints ID: 33010
URI: http://eprints.soton.ac.uk/id/eprint/33010
ISSN: 0013-0133
PURE UUID: b4377d48-9c9d-4a5e-a116-53f3eb85e888
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Date deposited: 19 Jul 2006
Last modified: 16 Mar 2024 02:50
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