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Skill-Upgrading and the Savings of Immigrants

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  • Cristobal, Adolfo
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    Abstract

    This note derives positive and normative implications about the effects of immigration on welfare and the skill composition of the labor force in receiving economies. The main channel through which immigration affects labor-market outcomes is the availability of new loanable funds for investment, which results in endogenous skill-upgrading. Given their high training costs and their lifelong working period, immigrants self-select as net lenders, which facilitates the upgrading of both new generations of natives and migrants. Under sufficient altruism towards future generations, this induces a Pareto-improvement among the current generations of natives.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 221.

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    Date of creation: 27 Jun 2006
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    Handle: RePEc:pra:mprapa:221

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    1. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
    2. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 60(1), pages 35-52, January.
    3. Malcolm J. Macmillen, 1982. "The Economic Effects of International Migration: A Survey," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 20(3), pages 245-267, 03.
    4. Ottaviano, Gianmarco Ireo Paolo & Peri, Giovanni, 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the US," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5226, C.E.P.R. Discussion Papers.
    5. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
    6. Rigolini, Jamele, 2004. "Education technologies, wages and technological progress," Journal of Development Economics, Elsevier, Elsevier, vol. 75(1), pages 55-77, October.
    7. Djajic, Slobodan, 1989. "Migrants in a guest-worker system : A utility maximizing approach," Journal of Development Economics, Elsevier, Elsevier, vol. 31(2), pages 327-339, October.
    8. Galor, Oded & Stark, Oded, 1990. "Migrants' Savings, the Probability of Return Migration and Migrants' Performance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 463-67, May.
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