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Article citations


Parkin, M. (2019) Economics. 13th Edition, Pearson Education Ltd., Harlow.

has been cited by the following article:

  • TITLE: Effects of Migration in a Basic Labour Market Model

    AUTHORS: Hannu Laurila

    KEYWORDS: Labour Migration, Nominal Wages, Prices, Taxation

    JOURNAL NAME: Theoretical Economics Letters, Vol.9 No.6, August 2, 2019

    ABSTRACT: This paper tackles the textbook message that free migration of labour equalizes real wages between local labour markets, since nominal wages should rise and prices should fall in emigrating localities and vice versa in immigrating localities. Reverse price adjustments should thus help in stabilizing migration. The paper investigates the idea in a basic labour market model with sequential comparative statics, and gets conflicting findings: both decreasing prices in the emigrating end and increasing prices in the immigrating end foster emigration. Furthermore, common wisdom is that, if emigration forces the locality to elevate tax rates, people’s voting with feet should foster emigration. This paper shows that this is true only with notable tax increases. In the other end, induced emigration appears if the initially immigrating locality is forced to increase its taxes, even modestly.