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Immigration, Wages, and Growth in the Host Nations

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  • Mideksa, Torben
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    Abstract

    This paper investigates the impact of skilled immigrants on the welfare the host natives. By employing the idea of induced technical change, and the skilled wage premium, this paper tries to link skilled immigration with observed rise in college enrolment, rise in skilled wages, and further acceleration of skilled wage premium. Through creation of demand for skill complimenting capital goods, skilled immigration raise the incentive for skill directed technical change which fuel up skilled wage in North, international wage differential, and the incentive for human capital formation. The results of the model are consistent with broad empirical regularities observed for three decades or more.

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    File URL: http://mpra.ub.uni-muenchen.de/2168/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2168.

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    Date of creation: 2007
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    Handle: RePEc:pra:mprapa:2168

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    Keywords: Skilled immigration; technical change; human capital; economic growth;

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    1. Acemoglu, Daron & Zilibotti, Fabrizio, 2000. "Productivity Differences," CEPR Discussion Papers 2498, C.E.P.R. Discussion Papers.
    2. Acemoglu, D., 1997. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," Working papers 97-14, Massachusetts Institute of Technology (MIT), Department of Economics.
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