Is a Policy of Free Movement of Workers Sustainable? : Is a policy of free movement of workers sustainable?
Picard, Pierre;Worrall, Tim
(2016) The Scandinavian journal of economics — Vol. 118, n° 4, p. 718-754 (2016)
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Picard, PierreUCLouvain
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Worrall, TimUniversity of Edinburgh
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Abstract
In this paper, we study the costs and benefits of the adoption of a policy of free movement of workers. For countries to agree on uncontrolled movements of workers, short-run costs must be outweighed by the long-term benefits of better labor-market flexibility and income smoothing. We show that such a policy is less likely to be adopted when workers are more impatient and less risk-averse, when production technologies display stronger decreasing returns, and when countries trade a significant share of their products
Picard, P., & Worrall, T. (2016). Is a Policy of Free Movement of Workers Sustainable? : Is a policy of free movement of workers sustainable? The Scandinavian journal of economics, 118(4), 718-754. https://doi.org/10.1111/sjoe.12163 (Original work published 2016)