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Acceso Abierto

The balassa-samuelson hypothesis and elderly migration

Título de la revista
Autores
Zuleta, Hernando
Ávila Montealegre, Oscar Iván
Rodríguez Acosta, Mauricio Andrés

Fecha
2009-01

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Editor
Universidad del Rosario

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Métricas alternativas

Resumen
Abstract
We present an Overlapping Generations Model with two final goods: tradable goods are produced with a standard Cobb-Douglas production function and non-tradable goods are produced with linear production function where the only factor is labor. We maintain the fundamental assumption of factor mobility between sectors so model is consistent with the Balassa-Samuelson hypothesis. Given the general equilibrium structure of our model we can examine the effect of the saving rate on migration and non-tradable relative prices. Under this setting, we find that the elderly have incentives to migrate from economies where productivity is high to economies with low productivity because of the lower cost of living. In more general terms the elderly migration is likely to go from rich to poor countries. We also find that, for poor countries, the elderly migration has a positive effect in wages and capital accumulation.
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Keywords
Tradable and non-tradable , Overlapping generations , Balassa-Samuelson , Elderly migration
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