Someday My Prince Will Come: Unemployment, Income Transfer and International Factor Movement

Abstract

Unemployment has been observed in developed countries as well as developing countries. The unemployed in the developed countries can be characterized as being dependent because they have excessive expectations of their jobs and rely on others for a living. This type of unemployment has been increasing, particularly among the younger generation in industrialized countries, for example, Japan. On the other hand, there has been an extensive movement of labor among countries. Thus, this paper investigates the effects of international labor (as well as capital) movement on unemployment, particularly when there is income transfer to the unemployed workers.JEL Classification: F16, J61, R13