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International labor migration and social security: Analysis of the transition path

Abstract.

This paper numerically simulates a two-country overlapping-generations model to study international labor migration when the two countries are characterized by different social-security systems. The present analysis extends previous work beyond steady-state considerations. The most striking result is that in all cases considered, dynamically efficient and inefficient economies in autarkic steady-state, migration leads to temporary welfare losses in both countries. In all cases, the transition path is characterized by temporary dynamic inefficiency in one country.

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Correspondence to Doris Geide-Stevenson.

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All correspondence to Doris Geide-Stevenson. We would like to thank an anonymous referee for very helpful comments. We are responsible for any remaining errors. Responsible editor: Christoph M. Schmidt.

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Geide-Stevenson, D., Ho, M. International labor migration and social security: Analysis of the transition path. J Popul Econ 17, 535–551 (2004). https://doi.org/10.1007/s00148-004-0202-5

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  • DOI: https://doi.org/10.1007/s00148-004-0202-5

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  • F22

Key words

  • International migration
  • social security
  • OLG model