Advanced Search
MyIDEAS: Login to save this article or follow this journal

Estimating the Impacts of a Reduction in the Foreign-born Labor Supply on a State Economy: A Nested CGE Analysis of the Idaho Economy

Contents:

Author Info

  • Watson, Philip S.

    (Department of Agricultural Economic and Rural Sociology,University of Idaho)

  • Castelin, Kimberly

    (Department of Agricultural Economic and Rural Sociology,University of Idaho)

  • Salant, Priscilla

    (Office of Community Partnerships,University of Idaho)

  • Wulfhorst, J.D.

    (Department of Agricultural Economic and Rural Sociology,University of Idaho)

Registered author(s):

    Abstract

    This analysis examines the effects of reducing the supply of foreign-born labor on the Idaho economy. We estimate effects on gross state product, state and local tax revenue, total economic output, employment, wages, and changes in household welfare measured as equivalent variation. Estimates of labor usage by industry sector are obtained from governmental and non-governmental data sources and are incorporated into a 14 sector nested computable general equilibrium (CGE) model with five primary factors of production consisting of capital and four different labor groups (foreign-born less educated, native-born less educated, foreign-born more educated, and native-born more educated). The results of the model indicate that at the expected elasticities of substitution between similarly educated native-born and foreign-born labor, the reduction of the foreign-born less educated labor supply modestly increases the demand for native-born less educated labor while causing reductions in state GDP, total economic output, and household utility. The importance of the elasticities of substitution between the various labor groups in influencing the impact results is discussed and a sensitivity analysis performed. The CGE results are then compared to the results of another common model for estimating impacts, an input-output model, and the differences are discussed.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/42.1.4/pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

    Volume (Year): 42 (2012)
    Issue (Month): 1 (Spring)
    Pages: 51-74

    as in new window
    Handle: RePEc:rre:publsh:v:42:y:2012:i:1:p:51-74

    Contact details of provider:
    Web page: http://www.srsa.org

    Related research

    Keywords: foreign-born labor; elasticity of substitution; computable general equilibrium;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:42:y:2012:i:1:p:51-74. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark L. Burkey).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.