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Transfer Arrangement, Labor Migration and Community Welfare

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Title: Transfer Arrangement, Labor Migration and Community Welfare
Authors: Yamada, Daichi Browse this author
Keywords: Informal transfer
Labor migration
Issue Date: May-2014
Publisher: Graduate School of Economics and Business Administration, Hokkaido University
Journal Title: Discussion Paper, Series A
Volume: 272
Start Page: 1
End Page: 11
Abstract: An informal transfer arrangement within a community redistributes incomes. While this may improve the welfare by mitigating the income inequality, it will also a ect households’ decisions on labor migration, a way to expand incomes. This paper theoretically examines the transfer arrangement that maximize the community welfare, taking into account its e ect on endogenous labor migration decisions. The result shows that the welfare is maximized when the redistribution through transfer is limited. It also presents an alternative explanation for empirical findings of limited transfer arrangement.
Type: bulletin (article)
Appears in Collections:Discussion paper > Series A

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