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Immigration Policy, Equilibrium Unemployment, and Underinvestment in Human Capital

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Author Info
Christian Lumpe
Benjamin Weigert

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Abstract

We analyse the impact of different immigration policies on human capital investment in a search-theoretic model. This class of models features unemployment and underinvestment in human capital. The underinvestment in human capital can be solved by combining immigration policy with appropriate education subsidies. Extending the model with respect to different skill groups allows to analyse the observed bimodal skilled immigration of the USA. Copyright 2009 The Authors. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2009.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9914.2008.00435.x
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Publisher Info
Article provided by CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd in its journal LABOUR.

Volume (Year): 23 (2009)
Issue (Month): 1 (03)
Pages: 97-130
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Handle: RePEc:bla:labour:v:23:y:2009:i:1:p:97-130

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  1. Wido Geis, 2009. "Does Educational Choice Erode the Immigration Surplus?," Ifo Working Paper Series Ifo Working Paper Nr. 80, Ifo Institute for Economic Research at the University of Munich. [Downloadable!]
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This page was last updated on 2009-12-19.

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