Illegal Immigration in a Heterogeneous Society
AbstractThis paper examines the effects of illegal immigration in a neoclassical growth model with two groups of workers, skilled and unskilled. We show that although illegal immigration is a boon to a country as a whole, there are distributional effects, whose sign is in general ambiguous. This is because all sources of income of both groups are affected and some of these changes tend to move income in opposite directions. Nevertheless, a calibration exercise shows that the wealth distribution is likely to become more unequal as the number of illegal immigrants increases. We confirm most of our calibration results analytically in a small open economy version of the basic model.
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Bibliographic InfoPaper provided by Department of Economics, University of Macedonia in its series Discussion Paper Series with number 2007_02.
Date of creation: Dec 2007
Date of revision: Dec 2007
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Web page: http://www.uom.gr/index.php?tmima=3
Economic Growth; Illegal Immigration; Income Distribution;
Other versions of this item:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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