TY - UNPB

T1 - Regional Redistribution and Migration

AU - Manasse, Paolo

AU - Schultz, Christian

N1 - JEL Classification: H23

PY - 1999

Y1 - 1999

N2 - We study a model with free migration between a rich and a poor region. Since there is congestion, the rich region has an incentive to give the poor region a transfer in order to reduce immigration. Faced with free migration, the rich region voluntarily chooses a transfer, which turns out to be equal to that a social planner would choose. Provided migration occurs in equilibrium, this conclusion holds even in the presence of moderate mobility costs. However, large migration costs will lead to suboptimal transfers in the market solution

AB - We study a model with free migration between a rich and a poor region. Since there is congestion, the rich region has an incentive to give the poor region a transfer in order to reduce immigration. Faced with free migration, the rich region voluntarily chooses a transfer, which turns out to be equal to that a social planner would choose. Provided migration occurs in equilibrium, this conclusion holds even in the presence of moderate mobility costs. However, large migration costs will lead to suboptimal transfers in the market solution

M3 - Working paper

BT - Regional Redistribution and Migration

PB - Innocenzo Gasparini Institute for Economic Research

CY - Milan

ER -