85-96

• Shimada, Akira

This paper investigates the effects of minimum wages on the inflow of unskilled foreign workers in a two-country macroeconomic model. We assume that all workers are unskilled and workers move from a country of lower expected real-consumption wages to a country of higher ones. This paper shows that, in cases where minimum wages are not introduced, workers move from a country with a larger domestic labor force to a country with a smaller one. If minimum wages are introduced into a country with a smaller domestic labor force, such migration can probably be reduced.

• Economics and Business
• Computer and information sciences

• Labor economics
• Migrations of nations
• Macroeconomics
• Statistics

international migration of unskilled labor, minimum wages, two-country macroeconomic model

Περιέχει σημειώσεις και βιβλιογραφία, I am deeply indebted to George M. Agiomirgianakis for providing many encouraging comments and helpful suggestions on earlier drafts. This paper was presented at the 2nd annual meeting of the European Economics and Finance Society. I am grateful to the participants at the conference for helpful comments and valuable suggestions. Thanks are also due to anonymous referees for constructive comments. Of course, any shortcomings of the paper are my responsibility., JEL Classification: F41; F22; J38