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The dynamics of immigration policy with wealth-heterogeneous immigrants

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  • James F. Dolmas
  • Gregory W. Huffman

Abstract

In this paper we consider a simple intertemporal economy in which immigrants, if admitted, bring heterogeneous amounts of capital. We show that under certain conditions there is a level of immigration which maximizes the economy's capital-labor ratio, and that this level of immigration is the preferred choice of a majority of the economy's citizens. We then characterize, in an overlapping generations setting, the dynamics of capital accumulation and immigration policy, which can include multiple steady state equilibria and a sensitivity of immigration levels to changes in the economy's technology growth rate.

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File URL: http://www.dallasfed.org/assets/documents/research/papers/2000/wp0006.pdf
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Bibliographic Info

Paper provided by Federal Reserve Bank of Dallas in its series Working Papers with number 0006.

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Date of creation: 2000
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Handle: RePEc:fip:feddwp:00-06

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Keywords: Emigration and immigration;

References

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  1. Ashley S. Timmer & Jeffrey G. Williamson, 1996. "Racism, Xenophobia or Markets? The Political Economy of Immigration Policy Prior to the Thirties," NBER Working Papers 5867, National Bureau of Economic Research, Inc.
  2. Jim Dolmas & Gregory W. Huffman, 2004. "On The Political Economy Of Immigration And Income Redistribution," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1129-1168, November.
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Cited by:
  1. Joseph H. Haslag & Mark G. Guzman & Pia M. Orrenius, 2002. "Coyote crossings : the role of smugglers in illegal immigration and border enforcement," Research Working Paper, Federal Reserve Bank of Kansas City RWP 02-04, Federal Reserve Bank of Kansas City.
  2. Simon Guidecoq & Michel Rocca, 2010. "Réforme "Obama" de la politique d'immigration et pronostics des théories économiques : les influences de la majorité politique et de la conjoncture économique," Post-Print halshs-00560088, HAL.
  3. Ortega, Francesc, 2005. "Immigration quotas and skill upgrading," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1841-1863, September.
  4. Jim Dolmas & Gregory W. Huffman, 2003. "The Political Economy of Immigrationa and Income Redistribution," Vanderbilt University Department of Economics Working Papers 0312, Vanderbilt University Department of Economics.

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