The Effects of Changes in the Unskilled Foreign Worker Quota on the Skilles and Unskilled Native Workers
抄録
Assuming a small open economy where wages are determined by the efficiency wage hypothesis and the labor market has a dual structure, we investigate how changes in the unskilled foreign worker quota affect skilled and unskilled native workers. For this purpose, we assume that the unskilled foreign worker quota is smaller than the number of workers who are willing to migrate to a small open economy. We also assume that the labor of the skilled native workers is supplied in the primary labor market and that of the unskilled native and foreign workers is supplied in the secondary labor market. We show that increases in the unskilled foreign worker quota augment the skilled native worker employment and wages and decrease those of the unskilled native workers. We also show that the expected lifetime utility of the individual employed and unemployed skilled native workers and the sum of all the skilled native workers' expected lifetime utilities increase with an increase in the quota ; however, the effects of increases in the quota on the expected lifetime utility of individual employed and unemployed unskilled native workers and the sum of all the unskilled native workers' expected lifetime utilities are ambiguous. Our results imply that increases in the unskilled foreign worker quota have positive effects on the skilled native workers, whereas their effects on the unskilled native workers are not necessarily positive.