Open Economies Review

, Volume 12, Issue 1, pp 5–27

Labor Supply, Migration, and Long-Term Development

  • Lucas Bretschger
Article

DOI: 10.1023/A:1026502909466

Cite this article as:
Bretschger, L. Open Economies Review (2001) 12: 5. doi:10.1023/A:1026502909466

Abstract

This article analyzes the impact of the supply of skilled and unskilled labor on the growth rate of open economies. Using an expansion-in-varieties framework, the model distinguishes between a long-term equilibrium and a medium-term adjustment path. It is demonstrated that the dynamic effects of labor supply are different in a model with expanding varieties in the consumption sector from those in a model with expanding varieties in the production sector. In addition, the outcome depends on the elasticities of substitution in production as well as the countries' production shares in world goods markets. It is shown that, in general, the supply of unskilled labor is likely to have an unfavorable effect on long-term development.

migration growth increasing varieties research and development 

Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Lucas Bretschger
    • 1
  1. 1.University of GreifswaldGreifswaldGermany

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