Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58807
Authors: 
Tosun, Mehmet S.
Year of Publication: 
2011
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6188
Abstract: 
This paper provides a demographic outlook of the Euro-Mediterranean region and then shows the economic and fiscal consequences of such demographic differences within a two-region model with international labor mobility. International labor mobility is also examined through an externalities framework where brain drain from migration could be taxed by the home countries. Taxing the brain drain has a substantial limiting effect on labor migration and a small negative effect on per worker growth. On the other hand, it could be a solution to the negative externality problem associated with brain drain. It is also found that such tax can raise substantial tax revenue for the SMCs which could be used to enhance human capital in the region.
Subjects: 
demographic divide
demographic deficit
population aging
youth bulge
labor mobility
brain drain
overlapping generations
endogenous tax policy
Mediterranean region
JEL: 
E62
F22
H23
H24
H41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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