Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18948
Year of Publication: 
2005
Series/Report no.: 
CESifo Working Paper No. 1484
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper considers the allocation of two types of individuals differentiated by levels of talent within and between two countries when they choose to be workers or entrepreneurs. The equilibrium with international migrations requires both countries to be sufficiently different in talent endowments and is consistent with individuals moving in one or in both directions whether they are entrepreneurs or workers. Average welfare per capita falls in the country losing highly talented individuals and rises in the country attracting them. However, in both countries, the liberalization of migrations for immigrants, emigrants or both is always supported by majority voting.
JEL: 
F22
F2
J61
Document Type: 
Working Paper
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