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The simple analytics of optimal growth with illegal migrants

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Author Info
Hazari, Bharat R.
Sgro, Pasquale M.

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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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Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Couverture Orange) with number 0301.

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Length: 18 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:cpm:cepmap:0301

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Find related papers by JEL classification:
F2 - International Economics - - International Factor Movements and International Business
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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  1. Theodore Palivos, 2009. "Welfare effects of illegal immigration," Journal of Population Economics, Springer, vol. 22(1), pages 131-144, January. [Downloadable!] (restricted)
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  2. 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. [Downloadable!]
  3. Gemma Larramona & Jesus Clemente & Fernando Pueyo, 2005. "Politics of immigration - quotas of entrance and hidden economy," ERSA conference papers ersa05p536, European Regional Science Association. [Downloadable!]
  4. 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. [Downloadable!]
  5. Theodore Palivos & Chong K. Yip, 2007. "Illegal immigration in a heterogeneous society," Discussion Paper Series 2007_02, Department of Economics, University of Macedonia, revised Dec 2007. [Downloadable!]
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This page was last updated on 2009-12-5.

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