Migration, Medical Aid and Welfare

19 Pages Posted: 23 Dec 2007

See all articles by Wataru Kureishi

Wataru Kureishi

National Institute of Population & Social Security Research

Ken Tabata

Kobe City University of Foreign Studies - Department of Foreing Studies

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

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

Wataru Kureishi (Contact Author)

National Institute of Population & Social Security Research

Hibiya Kokusai Building 6th Floor
2-2-3 Uchisaiwai-cho
Tokyo 100-0011, Chiyoda-ku 100-0011
Japan

Ken Tabata

Kobe City University of Foreign Studies - Department of Foreing Studies ( email )

9-1, Gakuenhigashimachi, Nishi-ku
Kobe 654-2187
Japan
81-78-794-8276 (Phone)

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