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Title: 企業による不熟練自国人労働者の優先的雇用と不熟練外国人労働者の流入抑制
Other Titles: Reducing the Inflow of Unskilled Foreign Workers under the Firm's Preferential Hiring of Unskilled Native Workers
Authors: 島田, 章
Authors (alternative): Shimada, Akira
Issue Date: 27-Dec-2004
Citation: 經營と經濟. vol.84(3), p.1-14; 2004
Abstract: Using a two-country macroeconomic model of labor migration, we investigate the effects of minimum wages on the inflow of unskilled foreign workers under the firm's preferential hiring of unskilled native workers. We assume that both countries' workers are unskilled, and each country has a single labor market where unskilled labor is traded. We also assume that workers move from a country of lower expected real-consumption wages (nominal wages divided by the consumer price index and multiplied by the probability of employment) to a country of higher wages. We show that the home country faced with the inflow of unskilled foreign workers can reduce it by raising its minimum wages without making unskilled native worker employment smaller. Increases in minimum wages lead to the lower employment probability of immigrant foreign workers, making their expected real-consumption wages at the home country relatively lower to those in the foreign country. We also show that the sum of unskilled native worker real-consumption wages is likely to increase with increases in minimum wages. This results from the fact that unskilled native workers are fully employed as long as increases in minimum wages are limited. Our results suggest that under the realistic assumption of the firm's preferential hiring of unskilled native workers, minimum wages not only reduce the inflow of unskilled foreign workers, but also improve the welfare of unskilled native workers.
Keywords: international migration of labor / firm's preferential hiring of unskilled native workers / two-country macroeconomic model
URI: http://hdl.handle.net/10069/6860
ISSN: 02869101
Type: Departmental Bulletin Paper
Appears in Collections:Volume 84, No. 3

Citable URI : http://hdl.handle.net/10069/6860

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