earticle

영어

This paper presents a theoretical model of regional labor movement (immigration) due to productivity distribution. Extending the job search model developed by John McCall, which uses Bellman equation for value functions, and including productivity difference across regions (countrires), the paper obtained several results about immigration behavior and reservation wages assuming that home country's wage offer distribution is stochastically dominated by that of foreign country. If immigration is inevitable after rejection of a wage offer, then the reservation wage in home country is higher than the reservation wage in foreign country. If a worker can choose his job search country, then after a rejection of wage offer in the home country, he immigrates immediately and do not come back. However, if home country government offers a emigration subsidy, then he searches job coming back and forth between home and foreign country. If there is a cost in immigration, then reservation wage in both countries decreases compared to the case in which no costs are incurred.