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2017 | OriginalPaper | Buchkapitel

10. Unemployment, Environmental Policy, and International Migration

verfasst von : Kenji Kondoh

Erschienen in: The Economics of International Immigration

Verlag: Springer Singapore

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Abstract

Among the serious economic problems faced by developed countries like Japan, decreasing population and unemployment are the most difficult to deal with. One of the reasons is that these two phenomena are supposedly contradictory—a decreasing population usually implies a shortage of workers. In Japan, temporary economic recession generates a large number of unemployed persons—as many as 3.67 million as of September 2009 and around 1 million more than the October 2008 figures. The working-age population of Japan has been decreasing since 1995, and it has become necessary to introduce foreign workers to sustain long-term economic performance. However, recent economic conditions have diverted attention from this impending issue to the pressing problem of how to supply enough job opportunities to domestic labor.

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Fußnoten
1
The Harris–Todaro framework has been utilized extensively in development and trade literature. See, for example, Bhagwati and Srinivasan (1974), Khan (1982), Neary (1981), Beladi and Marjit (1996), Yabuuchi (1993), Gupta (1995), Chao and Yu (1996), Basu (2000), Marjit and Beladi (2003), and Beladi and Yabuuchi (2010).
 
2
Usually, the Harris–Todaro setting is applied to developing countries. In Japan, the unemployment rate in urban areas is not always higher than that in rural areas, and workers are not always unionized in urban areas. However, except for Hokkaido and Okinawa, the location of which is quite inconvenient for domestic migration; the unemployment rate in the Osaka region, the second largest urban area, has been the highest. Moreover, the lifelong income of an urban worker who is employed by a unionized large firm would be higher than that of a rural worker engaged in the agricultural or fishing industry. Therefore, we believe that the Harris–Todaro setting might be valid even in developed countries like Japan.
 
3
It might be necessary to remark that, from (10.20) and (10.21), we can easily derive (10.12). Usually, the government determines the tax rate t to maximize social utility, U. However, in our analysis, because of strong resistance by the manufacturing industry, we assume that the tax rate is lower than the optimal level and exogenously given. Moreover, to satisfy (10.23), we implicitly assume λ − μD > 0.
 
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Metadaten
Titel
Unemployment, Environmental Policy, and International Migration
verfasst von
Kenji Kondoh
Copyright-Jahr
2017
Verlag
Springer Singapore
DOI
https://doi.org/10.1007/978-981-10-0092-8_10