International migration and welfare in the source country

B. Basu, G. Bhattacharyya

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

We assume that migrants own both labor and capital and they leave a portion of their capital behind when they migrate. The non-migrants experience an increase in their capital stock if the migrants decide not to move a part of their capital stock when they migrate - we have called this the capital enrichment effect on the non-migrants. As the loss in trading opportunities caused by the migrants' departure is accompanied by an improvement in the production possibility frontier of the non-migrants as a result of this capital enrichment effect, it is not true that migration will lead to a loss in the welfare of the non-migrants. We have tried to compare these two effects on non-migrants. We have shown that migrants may be better off or worse off as a result of migration in our model irrespective of whether the non-traded good is relatively labor intensive. -from Authors

Original languageEnglish
Pages (from-to)63-75
Number of pages13
JournalScandinavian Journal of Development Alternatives
Volume10
Issue number4
StatePublished - 1991

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