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The simple analytics of optimal growth with illegal migrants

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  • Hazari, Bharat R.
  • Sgro, Pasquale M.

Abstract

This paper analyses the impact of illegal migration on the optimal path of domestic (resident) consumption. The analysis draws two importants conclusions. First, if illegal migrants and domestic labour are perfect substitutes, illegal migration necessarily lowers the long-run per capital consumption of domestic residents. Second, if illegal migrants and domestic labour are imperfect substitutes, the effect on the long-run per capital domestic consumption is ambiguous, however, in the Cobb-douglas case, the result is clear cut an per capita domestic consumption rises as a result of illegal migration.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 28 (2003)
Issue (Month): 1 (October)
Pages: 141-151

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Handle: RePEc:eee:dyncon:v:28:y:2003:i:1:p:141-151

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References

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  1. Hillman, Arye L. & Weiss, Avi, 1999. "A theory of permissible illegal immigration," European Journal of Political Economy, Elsevier, vol. 15(4), pages 585-604, November.
  2. Hazari, Bharat R & Sgro, Pasquale M, 2000. "Illegal Migration, Border Enforcement, and Growth," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 258-67, October.
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Citations

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Cited by:
  1. Cheuk Yin Ho, 2007. "Illegal migration and economic growth: simulation analysis in an international context," Economics Bulletin, AccessEcon, vol. 6(41), pages 1-13.
  2. Carmelo Pierpaolo Parello, 2012. "Indeterminacy in a Dynamic Small Open Economy with International Migration," Working Papers 159, University of Rome La Sapienza, Department of Public Economics.
  3. Theodore Palivos & Chong K. Yip, 2007. "Illegal Immigration in a Heterogeneous Society," Departmental Working Papers _188, Chinese University of Hong Kong, Department of Economics.
  4. Chassamboulli, Andri & Palivos, Theodore, 2010. ""Give me your Tired, your Poor," so I can Prosper: Immigration in Search Equilibrium," MPRA Paper 32379, University Library of Munich, Germany.
  5. Chassamboulli, Andri & Palivos, Theodore, 2012. "A Search-Equilibrium Approach to the Effects of Immigration on Labor Market Outcomes," MPRA Paper 43297, University Library of Munich, Germany.
  6. Djajić, Slobodan & Vinogradova, Alexandra, 2013. "Undocumented migrants in debt," Labour Economics, Elsevier, vol. 21(C), pages 15-24.
  7. Theodore Palivos, 2009. "Welfare effects of illegal immigration," Journal of Population Economics, Springer, vol. 22(1), pages 131-144, January.
  8. Franck Düvell, 2011. "Irregular Immigration, Economics and Politics," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(3), pages 60-68, October.
  9. Theodore Palivos & Jianpo Xue & Chong K. Yip, 2011. "Illegal Immigration, Factor Substitution and Economic Growth," Discussion Paper Series 2011_10, Department of Economics, University of Macedonia, revised Jun 2011.
  10. Theodore Palivos & Chong Yip, 2010. "Illegal immigration in a heterogeneous labor market," Journal of Economics, Springer, vol. 101(1), pages 21-47, September.
  11. Gemma Larramona & Jesus Clemente & Fernando Pueyo, 2005. "Politics of immigration - quotas of entrance and hidden economy," ERSA conference papers ersa05p536, European Regional Science Association.
  12. Moy, Hon Man & Yip, Chong K., 2006. "The simple analytics of optimal growth with illegal migrants: A clarification," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2469-2475, December.
  13. repec:ebl:ecbull:v:6:y:2007:i:41:p:1-13 is not listed on IDEAS
  14. Gemma Larramona & Jesus Clemente & Pedro Garcia-Castrillo, 2004. "Illegal immigration and a heterogeneous labour force. When can quotas generate an internal conflict?," ERSA conference papers ersa04p125, European Regional Science Association.
  15. Djajić, Slobodan, 2013. "Barriers to immigration and the dynamics of emigration," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 41-52.
  16. Cerqueti, Roy & Correani, Luca & Garofalo, Giuseppe, 2013. "Economic interactions and social tolerance: A dynamic perspective," Economics Letters, Elsevier, vol. 120(3), pages 458-463.
  17. Maria Concetta Chiuri & Giuseppe De Arcangelis & Giovanni Ferri, . "Crisis in the Country of Origin and Illegal Immigration Into Europe via Italy," Working Papers 77, Sapienza University of Rome, CIDEI.

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