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International inmigration and mobility across sectors: an exploration of alternative scenarios for Spain

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  • Javier Ferri
  • Antonio G. Gómez-Plana
  • Joan Martín-Montaner

Abstract

This paper explores the economic e ects of international immigration in Spain by constructing a CGE model. We are mainly concerned about the issue of labor mobility across sectors. In our simulations, we rst restrict immigrants to work in a small set of industries receiving wages that are below the native ones, a situation that we call the short run. Then, we consider that immigrants can move freely among all the industries in the economy earning wages on a par with local workers. This we call the long run situation. The results suggest that short run economic performance can be improved by choosing strategic sectors to receive immigrants. We also nd evidence that the wage regime is an important parameter to explain the impact both in the short and in the long run.

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Paper provided by FEDEA in its series Studies on the Spanish Economy with number 124.

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Handle: RePEc:fda:fdaeee:124

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  1. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Society for Computational Economics, Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
  2. Inmaculada Garcia & Jose Alberto Molina, 1998. "Household labour supply with rationing in Spain," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 30(12), pages 1557-1570.
  3. Ballard, Charles L & Shoven, John B & Whalley, John, 1985. "General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States," American Economic Review, American Economic Association, American Economic Association, vol. 75(1), pages 128-38, March.
  4. Ethier, Wilfred J, 1986. "Illegal Immigration," American Economic Review, American Economic Association, American Economic Association, vol. 76(2), pages 258-62, May.
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  6. Alessandra Venturini, 1999. "Do immigrants working illegally reduce the natives' legal employment? Evidence from Italy," Journal of Population Economics, Springer, Springer, vol. 12(1), pages 135-154.
  7. Howe, Howard, 1975. "Development of the extended linear expenditure system from simple saving assumptions," European Economic Review, Elsevier, Elsevier, vol. 6(3), pages 305-310, July.
  8. Bond, Eric W. & Chen, Tain-Jy, 1987. "The welfare effects of illegal immigration," Journal of International Economics, Elsevier, Elsevier, vol. 23(3-4), pages 315-328, November.
  9. Dervis, Kemal & de Melo, Jaime & Robinson, Sherman, 1981. "A General Equilibrium Analysis of Foreign Exchange Shortages in a Developing Economy," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 91(364), pages 891-906, December.
  10. Mayer, Wolfgang, 1974. "Short-Run and Long-Run Equilibrium for a Small Open Economy," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(5), pages 955-67, Sept./Oct.
  11. Hillman, Arye L. & Weiss, Avi, 1999. "A theory of permissible illegal immigration," European Journal of Political Economy, Elsevier, Elsevier, vol. 15(4), pages 585-604, November.
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