Tourism, guest workers, and resident immiserization
Data(s) |
01/01/2003
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Resumo |
This paper analyses the impact of a boom in tourism on the welfare of the residents in the presence of guest workers. Guest workers are employed in the tourism industry and they consume non-traded goods and services. This consumption by guest workers converts non-traded goods into<br />exportables and creates guest worker generated monopoly power in trade in the home country. It is established that under certain plausible conditions a tourist boom (in the presence of guest workers) results in the immiserization of the resident population. This result arises due to an adverse movement in the terms-of-trade, specifically those associated with the guest workers consumption of non-traded goods. These results are based on a static model of trade and may not be necessarily<br />valid in a growth model with guest workers, tourism and labor shortages. It is not the object of the paper to be either anti-tourism or anti-guest worker, but only to show a possible source of resident immiserization that is associated with guest workers. This possibility may require correction via a suitable policy both in static and dynamic models.<br /> |
Identificador | |
Idioma(s) |
eng |
Publicador |
Western Illinois University |
Relação |
http://dro.deakin.edu.au/eserv/DU:30001959/n20030227.pdf http://www.jstor.org/stable/4192922 |
Tipo |
Journal Article |