Abstract
The objectives of this article are 1) to investigate the roles of international labor migration under the regional economic integration regime in an era of fertility decline, 2) to explore determinants of labor migration, and 3) to formulate a reform agenda for labor migration policy. The main findings are a) in regions suffering depopulation, migrant labor may mitigate mismatches in the local labor markets without negative effects on wages, b) in regions of industrial agglomeration, downward effects on wages as a result of migrant labor supply may be limited by active inflows of capital and the highly skilled, and c) status adjustment to permanent residence can play important roles in the regional economic integration. Based upon such findings, the author argues 1) migration policy should be targeted at the reduction of labor mismatches without negative effects on wages, 2) status adjustment is important in promoting migration of highly skilled workers, 3) the management of middle and low skilled migrant labor is of growing importance, 4) forming linkages between labor immigration policy and integration policy is urgent and essential.
