The Northern Immigration Policy in a North-South Economy Model

Taro Abe


Wooton (1985) considered the immigration into Findlay (1980)’s
North-South model and examined how the north’s relaxation of immigration
policy influences income in both regions. Based on Wooton (1985), this
paper has performed the same analysis assuming there to be a complete
capital mobility between the north and the south. The major findings are
as follows: In the long-run, the relaxation of the north’s immigration
policy does not affect the per capita income of both the northern labour
and immigrant workers. When the north practises a discriminative
redistribution policy against the immigrant workers, the per capita
income in the north will increase because redistribution of income from
the immigrant workers to the northern labour as a result of the policy
relaxation is taking place.

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