Work

An Estimated Maximum Remittance Level by Foreign Workers in Japan

Year: 1995
Type: article
Abstract: I . Introduction In a Computable General Equilibrium (CGE) analysis conducted by Goto (1992) on economic impacts of drastically increased inflows of foreign workers from other Asian nations into Japan in the second half of 1980's, he concluded that immigration brought about negative consequences to domestic welfare. This conclusion, however, seems to contradict a standard theory of international trade. His conclusion rests heavily on the assumption about the transfer of immigrants' income. In his model, all of the labor income gained by foreign workers is assumed to be transferred back to their source countries: it is not spent in Japan. The information concerning consumption ratio to their total income is crucial for determining the welfare effects of immigration, since domestic welfare should be examined taking into consideration the domestic consumption of foreign workers. Unfortunately we do not have such data, nor an expenditure survey of foreign workers. Thus, under the assumption that the minimum expenditure levels both of the Table 1 Annual average of expenditure share (Workers household) Per cent
Language: English
Open Access status: green
OpenAlex ID: W2787992507
FWCI:
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