Unemployment,environmental policy,and international migration

In this paper, we investigate the effects of an increase in emission tax, a decrease in fixed manufacturing wage rate, and an increased inflow of foreign workers on competitive wages, the environmental stock, the economic welfare of the representative consumer, and employment in the presence of a pollution abatement equipment sector and unemployment. Our main findings are that an increase in emission tax and a decrease in the urban minimum wage rate decrease unemployment, and international immigration may increase the competitive wage rate, employment rate, stock of environmental capital, and economic welfare of the representative worker.