Domestic labor, foreign capital and national welfare

Arbeitspapier

The competitive allocation of labor across different sectors of an economy may not be socially optimal when one sector uses foreign capital. We argue that a suitably designed government intervention is required to restrict the sectors to their optimal size and maximize national welfare. Such a policy internalizes the possibility of repatriation and reinvestment. We demonstrate the optimality of a minimum wage regulation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Dresden Discussion Paper Series in Economics ; No. 12/04

Classification and Topics

• Classification: Wirtschaft ; Trade and Labor Market Interactions ; International Investment; Long-term Capital Movements
• Subject: Foreign capital ; factor mobility ; national welfare ; targeting ; Arbeitsmarktpolitik ; Direktinvestition ; Internationale Faktormobilität ; Internationale Arbeitsmobilität ; Mindestlohn ; Mehr-Sektoren-Modell ; Wohlfahrtseffekt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Broll, Udo ; Hansen, Sabine ; Marjit, Sugata
• Event: Veröffentlichung
• (who): Technische Universität Dresden, Fakultät Wirtschaftswissenschaften
• (where): Dresden
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/22716
• Last update: 10.03.2025, 11:42 AM CET