This paper explores the economic eects 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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Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
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