The Economics of International Immigration : Environment, Unemployment, the Wage Gap, and Economic Welfare

"This is the first book that takes a theoretical approach to the effects of international immigration by considering the current economic topics confronted by more highly developed countries such as Japan. Developed here is the classic trade model by Heckscher-Ohlin-Samuelson, McDougall's basic model of the international movement factor, the urban-rural migration model by Harris-Todaro, and Copeland-Taylor's well-known model in the field of environmental economics by introducing new trends such as economic integration including free trade and factor mobility between countries at different stages of development. Coexistence of two types of immigrants -- legal, skilled workers and illegal, unskilled workers -- without any explicit signs of discrimination, transboundary pollution caused by neighboring lower-developed countries with poor pollution abatement technology, difficult international treatment of transboundary renewable resources, the rapid process of aging and population decrease, the higher unemployment rate of younger generations, and the serious gap between permanent and temporary employed workers--are also considered in this book as new and significant topics under the context of international immigration. Taking into account the special difficulties of those serious problems in Asia, each chapter illustrates Japanese and other Asian situations that encourage readers to understand the importance of optimal immigration policies. Also shown is the possibility that economic integration and liberalization of international immigration should bring about positive effects on the economic welfare of the developed host country including the aspects of natural environment, renewable transboundary resources, the rate of unemployment, and the wage gap between workers."--Publisher's website Preface 8 Contents 10 1 Introduction and Summary 16 1.1 Introduction 16 1.1.1 Historical View of International Immigration 16 1.1.2 International Immigration in Asian Countries 19 1.2 Economic Theory on International Migration: Special Subjects 26 1.2.1 Unemployment 27 1.2.2 Nontradable Sector 28 1.2.3 Human Utility Maximization 28 1.2.4 Capital Owner 29 1.2.5 Diversity in Quality of Workers 30 1.2.6 Negative Effects on Natives 31 1.2.7 The Second Mobile Factor 32 1.2.8 Human Networks 33 1.3 Summary of This Text 34 1.3.1 Part I: International Migration and the Economy of the Host Country 34 1.3.2 Part II: International Immigration and the Labor Market 35 1.3.3 Part III: International Immigration and the Natural Environment 36 1.3.4 Part IV: International Immigration and Economic Integration 37 References 38 Part I International Migration and the Economy of the Host Country 44 2 Permanent Migrants and Cross-Border Workers: The Effects on the Host Country 45 2.1 Introduction 45 2.2 The Model 47 2.3 The Analysis of Price Responses 49 2.4 The Analysis of Welfare 51 2.5 Concluding Remarks 53 Appendix 1 54 Appendix 2 56 References 57 3 Legal Migration and Illegal Migration: The Effectiveness of Qualitative and Quantitative Restriction Policies 59 3.1 Introduction 59 3.2 Illegal Migrants 62 3.2.1 The Model 62 3.2.2 Analysis 67 3.3 Legal Migration and Illegal Migration 68 3.3.1 The Model 68 3.3.2 Analysis of Case A 69 3.3.3 Analysis of Case B 70 3.3.4 Comparative Static Analysis 73 3.4 Concluding Remarks 74 Appendix 74 References 75 Part II International Immigration and the Labor Market 77 4 International Immigration and Economic Welfare in an Efficiency Wage Model: The Coexistence Case of Both Legal and Illegal Foreign Workers 78 4.1 Introduction 78 4.2 Labor Market 80 4.3 Case 1: The Number of Illegal Workers Is Strictly Controlled 83 4.3.1 An Increase in the Probability of Detection 84 4.3.2 An Increase in Internal or Border Enforcement Policy 85 4.3.3 An Increase in Income Tax 86 4.3.4 An Increase in the Inflow of Legal Foreign Worker 86 4.4 Case 2: The Number of Illegal Workers Cannot Be Controlled 87 4.4.1 An Increase in the Probability of Detection 88 4.4.2 An Increase in Income Tax 89 4.4.3 An Increase in the Inflow of Legal Foreign Workers 89 4.5 Concluding Remarks 90 References 91 5 Temporary and Permanent Immigration Under Unionization 92 5.1 Introduction 92 5.2 Basic Model Setup 94 5.2.1 Consumers 94 5.2.2 Agriculture 95 5.2.3 Manufacturing 95 5.3 Permanent Immigration 97 5.4 Temporary Immigration into Agriculture and Remittance 98 5.5 Temporary Immigration into Manufacturing and Remittance 100 5.6 Concluding Remarks 102 Appendix 1 104 Appendix 2 105 Appendix 3 106 References 107 6 The Frequency of Migration and Optimal Restriction Policies 109 6.1 Introduction 109 6.2 The Model 111 6.3 One-Time Migration and Repeat Migration 113 6.4 Comparative Static Analysis 116 6.4.1 An Increase in Travel Cost 118 6.4.2 An Increase in Capital Endowment in Country A 118 6.4.3 An Increase in Minimum Skill Requirement 119 6.5 Concluding Remarks 121 Appendix 122 References 123 Part III International Immigration and the Natural Environment 125 7 Trans-boundary Pollution and International Migration 126 7.1 Introduction 126 7.2 The Model 127 7.3 International Migration Without Trade 130 7.3.1 Permanent Migrants 131 7.3.2 Cross-Border Workers with Remittance in Manufactured Goods 134 7.3.3 Cross-Border Workers with Remittance in Agricultural Goods 136 7.4 International Trade and International Migration 138 7.5 Concluding Remarks 140 References 141 8 Trans-boundary Pollution and Brain Drain Migration 142 8.1 Introduction 142 8.2 The Model 144 8.3 The Direction of International Migration 147 8.4 Migration of Unskilled Workers 148 8.4.1 Effects on the Home Country 148 8.4.2 Effects on the Foreign Country 149 8.5 Brain Drain Migration 150 8.5.1 Effects on the Home Country 150 8.5.2 Effects on the Foreign Country 152 8.6 Rank-Down Brain Drain 152 8.6.1 Effects on the Home Country 152 8.6.2 Effects on the Foreign Country 153 8.7 International Trade and International Migration 154 8.8 Concluding Remarks 156 References 157 9 Pollution Abatement Equipment and International Migration 158 9.1 Introduction 158 9.2 The Model 159 9.3 Wage Difference in Autarkic Equilibrium 162 9.3.1 The International Difference in the Effects of Pollution Abatement Equipment on the Level of Abatement Technology 163 9.3.2 The International Difference in the Productivity of the Pollution Abatement Equipment Industry 164 9.3.3 The International Difference in the Emission Tax Rate 164 9.3.4 The International Difference in the Effect of Pollution Abatement Equipment 165 9.4 International Migration and Welfare 165 9.4.1 The Effects on Wage Rate 166 9.4.2 The Effects on Production and Environmental Capital 166 9.4.3 The Effect on Socioeconomic Welfare 167 9.5 Concluding Remarks 169 Appendix 169 References 170 10 Unemployment, Environmental Policy, and International Migration 172 10.1 Introduction 172 10.2 The Model and Assumptions 174 10.3 Comparative Statics: Autarkic Equilibrium 177 10.3.1 An Increase in Emission Tax 178 10.3.2 A Decrease in Urban Minimum Wage Rate 180 10.3.3 An Increase in the Total Amount of Workers 181 10.4 Concluding Remarks 183 References 183 11 Renewable Resources, Environmental Pollution, and International Migration 185 11.1 Introduction 185 11.2 The Model 187 11.3 Autarkic Equilibrium 188 11.4 International Migration Without Trade 190 11.4.1 Permanent Migrants 190 11.4.2 Cross-Border Workers Who Remit Their Income by Manufactured Goods 193 11.4.3 Cross-Border Workers Who Remit Their Income by Renewable Resources 194 11.5 International Trade and International Migration 195 11.6 Concluding Remarks 199 References 199 Part IV International Immigration and Economic Integration 201 12 International Integration with Heterogeneous Immigration Policies 202 12.1 Introduction 202 12.2 A Simple Three-Country Model of International Migration 205 12.2.1 Immigration and Welfare in the Receiving Country 206 12.2.2 Skill Formation and Legal Migration to the Country with Selective Immigration Policy 208 12.2.3 Illegal Migration in the Country with Selective Immigration Policy 210 12.2.4 Migration in the Country with Immigration Quota 212 12.2.5 On the Optimal Choice of the Immigration Policy Instrument 214 12.3 Economic Integration and Free Mobility of Native Workers 217 12.4 Concluding Remark 219 Appendix 220 References 221 13 Emigration, Immigration, and Skill Formation: The Case of a Midstream Country 222 13.1 Introduction 222 13.2 A Simple Three-Country Model of International Migration 225 13.2.1 Production and Wage Rates 225 13.2.2 Brain Drain Migration from Country B to A 226 13.2.3 Unskilled Workers' Migration from Country C to B 227 13.3 Multilateral Economic Integration 230 13.4 Concluding Remarks 234 Appendix 235 References 236 14 Can the Economic Partnership Agreements Help the Developed Country with a Decreasing Population? 238 14.1 Introduction 238 14.2 The Model 240 14.3 Analysis 244 14.3.1 Case of Exogenous Training Period 244 14.3.2 Case of Exogenous Total Number of Skilled Trainees 247 14.4 Concluding Remarks 249 Appendix 1 249 Appendix 2 250 References 252 Front Matter....Pages i-xiv Introduction and Summary....Pages 1-28 Front Matter....Pages 29-29 Permanent Migrants and Cross-Border Workers: The Effects on the Host Country....Pages 31-44 Legal Migration and Illegal Migration: The Effectiveness of Qualitative and Quantitative Restriction Policies....Pages 45-62 Front Matter....Pages 63-63 International Immigration and Economic Welfare in an Efficiency Wage Model: The Coexistence Case of Both Legal and Illegal Foreign Workers....Pages 65-78 Temporary and Permanent Immigration Under Unionization....Pages 79-95 The Frequency of Migration and Optimal Restriction Policies....Pages 97-112 Front Matter....Pages 113-113 Trans-boundary Pollution and International Migration....Pages 115-130 Trans-boundary Pollution and Brain Drain Migration....Pages 131-146 Pollution Abatement Equipment and International Migration....Pages 147-160 Unemployment, Environmental Policy, and International Migration....Pages 161-173 Renewable Resources, Environmental Pollution, and International Migration....Pages 175-190 Front Matter....Pages 191-191 International Integration with Heterogeneous Immigration Policies....Pages 193-212 Emigration, Immigration, and Skill Formation: The Case of a Midstream Country....Pages 213-228 Can the Economic Partnership Agreements Help the Developed Country with a Decreasing Population?....Pages 229-243