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Skill-Upgrading and the Savings of Immigrants

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  • Cristobal, Adolfo

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.

Suggested Citation

  • Cristobal, Adolfo, 2006. "Skill-Upgrading and the Savings of Immigrants," MPRA Paper 221, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:221
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    References listed on IDEAS

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    1. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
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    4. Gianmarco I.P. Ottaviano & Giovanni Peri, 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," NBER Working Papers 11672, National Bureau of Economic Research, Inc.
    5. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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