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The Growth and Welfare Effects of International Mass Migration

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Author Info
Lundborg, Per (Trade Union Institute for Economic Research)
Segerstrom, Paul S. () (Department of Economics, Michigan State University)

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Abstract

We analyse the effects of immigration quotas on growth and discounted welfare in a North-South version of the quality ladders growth model. Immigration quotas in the North increase the growth rate of utility for all consumers. However, they lower the static utility level and discounted welfare of Northern workers. Also the discounted welfare of asset owners drops. Hence, unlike in the static migration model where the representative agent in the host country benefits from immigration, in our dynamic migration model, the representative agent loses despite a positive growth effect of immigration. In general, the winners of a liberal immigration policy in the North are the immigrants and the remaining workers in the south.

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Publisher Info
Paper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 146.

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Length: 31 pages
Date of creation: 29 Sep 1998
Date of revision:
Publication status: Published in Journal of International Economics, 2002, pages 177-204.
Handle: RePEc:hhs:fiefwp:0146

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Related research
Keywords: migration; growth; welfare;

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Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," NBER Working Papers 3099, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Avinash Dixit, 1988. "A General Model of R&D Competition and Policy," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 317-326, Autumn. [Downloadable!] (restricted)
  3. Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Berry, R Albert & Soligo, Ronald, 1969. "Some Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 77(5), pages 778-94, Sept./Oct. [Downloadable!] (restricted)
  5. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December. [Downloadable!] (restricted)
  6. Carl Davidson & Paul Segerstrom, 1998. "R&D Subsidies and Economic Growth," RAND Journal of Economics, The RAND Corporation, vol. 29(3), pages 548-577, Autumn. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jess Benhabib & Boyan Jovanovic, 2007. "Optimal Migration: A World Perspective," NBER Working Papers 12871, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. 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 RWP 02-04, Federal Reserve Bank of Kansas City. [Downloadable!]
    Other versions:
  3. Arai, Mahmood & Skogman Thoursie, Peter, 2001. "Incentives and Selection in Cyclical Absenteeism," Working Paper Series 167, Trade Union Institute for Economic Research. [Downloadable!]
    Other versions:
  4. Lundborg, Per, 1999. "Work Morale and Economic Growth," Working Paper Series 153, Trade Union Institute for Economic Research. [Downloadable!]
  5. Kurt Hafner, 2004. "Economic Development and Agglomeration: Research Activity and Tax Competition in a Static Equilibrium Model," DEGIT Conference Papers c009_023, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  6. Strauss, Tove, 2000. "Economic Reforms and the Poor," Working Paper Series 164, Trade Union Institute for Economic Research. [Downloadable!]
  7. Etzo, Ivan, 2008. "Internal migration and growth in Italy," MPRA Paper 8642, University Library of Munich, Germany. [Downloadable!]
  8. Etzo, Ivan, 2008. "Internal migration: a review of the literature," MPRA Paper 8783, University Library of Munich, Germany. [Downloadable!]
  9. Mercedes Teruel-Carrizosa & Agustí Segarra-Blasco, 2008. "Immigration and Firm Growth: Evidence from Spanish cities," Working Papers XREAP2008-11, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2008. [Downloadable!]
  10. Kurt A. Hafner, 2006. "Agglomeration, Migration and Tax Competition," DEGIT Conference Papers c011_027, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  11. Kurt Hafner, 2004. "Industrial Agglomeration and Economic Development," cege – Center for European, Governance and Economic Development Research Discussion Papers 31, cege – Center for European, Governance and Economic Development Research, University of Goettingen (Germany).. [Downloadable!]
  12. Gilles Koléda, 2007. "Northern and Southern Patent Novelty Requirement Harmonization, Growth and Trade," DEGIT Conference Papers c012_011, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
    Other versions:
  13. Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Immigration Surplus Revisited in a General Equilibrium Model with Endogenous Growth," Department of Economics Discussion Papers 0203, Department of Economics, University of Surrey. [Downloadable!]
    Other versions:
  14. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," Department of Economics Discussion Papers 0103, Department of Economics, University of Surrey. [Downloadable!]
  15. Hans Fehr & Sabine Jokisch & Laurence Kotlikoff, 2004. "The Role of Immigration in Dealing with the Developed World's Demographic Transition," NBER Working Papers 10512, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  16. Francesco Magris & Giuseppe Russo, 2005. "Selective immigration policies, human capital accumulation and migration duration in infinite horizon," PSE Working Papers 2005-26, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  17. Strauss, Tove, 2000. "Structural Reforms, Uncertainty, and Private Investment," Working Paper Series 165, Trade Union Institute for Economic Research. [Downloadable!]
  18. 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!]
  19. Lucas Bretschger, 2001. "Labor Supply, Migration, and Long-Term Development," Open Economies Review, Springer, vol. 12(1), pages 5-27, January. [Downloadable!] (restricted)
  20. G. Bellettini & C. Berti Ceroni, 2003. "Opening the borders: immigration policy, migrants' selection and human capital accumulation," Working Papers 473, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
  21. Lundborg, Per & Rechea, Calin, 2002. "Will Transition Countries Benefit or Lose from the Brain Drain?," Working Paper Series 187, Trade Union Institute for Economic Research. [Downloadable!]
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