Some implications of external labour mobility for the development of micro‐states

Malcolm Treadgold (Department of Economics, University of New England, Armidale, Australia)
Patrick Laplagne (Department of Economics, University of New England, Armidale, Australia)

International Journal of Social Economics

ISSN: 0306-8293

Publication date: 1 April 1996

Abstract

Uses a one‐sector model to investigate how external labour mobility can affect the economic performance of micro‐states. In the absence of restrictions on labour market flows between a micro‐state and a larger economy, the micro‐state becomes virtually an extension of the large economy. It may expand or contract in total size relative to the larger economy, and gain or lose population accordingly; but the linkage of its level of real wages to the level of real wages in the larger economy constrains opportunities for independent growth in labour productivity and hence in output per capita. A labour‐exporting micro‐state will experience a more autonomous form of economic development when a binding quota on emigration detaches the domestic real wage from the foreign real wage. However, per capita growth is likely to be of a lower base than under conditions of unrestricted access.

Keywords

Citation

Treadgold, M. and Laplagne, P. (1996), "Some implications of external labour mobility for the development of micro‐states", International Journal of Social Economics, Vol. 23 No. 4/5/6, pp. 269-281. https://doi.org/10.1108/03068299610121840

Download as .RIS

Publisher

:

MCB UP Ltd

Copyright © 1996, MCB UP Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.