Download This PaperMigration, Medical Aid and Welfare
19 Pages Posted: 23 Dec 2007
Abstract
This paper constructs a simple rural-urban migration model that explicitly incorporates the interactions between the individual's migration decision, the risk of incurring an infectious disease and unemployment. We show that providing a subsidy for health investment in urban regions in the form of medical aid does not improve individual welfare. This is because it induces further urban migration, increases the risk of infection and unemployment, and offsets completely the positive cost-reduction effect.
Suggested Citation: Suggested Citation
Kureishi, Wataru and Tabata, Ken, Migration, Medical Aid and Welfare. Australian Economic Papers, Vol. 46, Issue 4, pp. 329-347, December 2007, Available at SSRN: https://ssrn.com/abstract=1077976 or http://dx.doi.org/10.1111/j.1467-8454.2007.00323.x
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