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Title:Sequential Migration, and the German Reunification PDF Logo
Authors:Birk, Angela
Issue Date:2004
Series/Report no.:HWWA Discussion Paper 305
Abstract:The paper develops a sequential migration model and derives a worker's optimal policies for migration and employment. With the worker's simulated reservation wage functions for employment and migration, a stationary equilibrium is defined. In that equilibrium, stationary distributions of employed and unemployed stayers and movers over different states are derived. The analysis of Markov equilibria shows that mainly unemployed skilled and unskilled migrants will migrate. I have referred to this unemployed self-selection of skilled and unskilled migrants. Furthermore, in the stationary equilibrium, a trade off between equity and efficiency is derived and represents the adverse effects when a government fosters income increases too much.
Subjects:Sequential Migration
Markov Equilibria
German Reunification
JEL:J61
E27
C61
Document Type:Working Paper
Appears in Collections:HWWA Discussion Paper, Hamburgisches Welt-Wirtschafts-Archiv

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