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Immigration and International Prices

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  • Marios Zachariadis

Abstract

This paper considers the relation between immigration and prices for a large number of cities across the world over the period from 1990 to 2006. Aggregate immigration ratios are shown to have a negative impact on international relative prices. The evidence is consistent with demand-side and supply-side considerations both being relevant for the price-reducing effect of immigration, with the latter offering a more likely explanation at annual frequencies during this period. Our findings regarding the inverse relation of immigration and prices and the channels via which this operates across international cities, are broadly consistent wih Lach (2007) and Cortes (2008) who investigate the same relation within Israel and for the US respectively.

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File URL: http://papers.econ.ucy.ac.cy/RePEc/papers/03-10.pdf
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Bibliographic Info

Paper provided by University of Cyprus Department of Economics in its series University of Cyprus Working Papers in Economics with number 03-2010.

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Length: 21 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:ucy:cypeua:03-2010

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Web page: http://www.econ.ucy.ac.cy

Related research

Keywords: Immigration; prices; inflation; international price differences;

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References

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  1. Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan Francisco, 2007. "Does Immigration Affect the Phillips Curve? Some Evidence for Spain," CEPR Discussion Papers 6604, C.E.P.R. Discussion Papers.
  2. Philippe Andrade & Marios Zachariadis, 2010. "Trends in International Prices," University of Cyprus Working Papers in Economics 02-2010, University of Cyprus Department of Economics.
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Cited by:
  1. Karin Mayr, 2012. "Occupation-specific immigration quotas in political equilibrium," Vienna Economics Papers 1207, University of Vienna, Department of Economics.

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