Crossing the Rio Grande: Migrations, business cycles and the welfare state
AbstractIn this paper we study the macroeconomic effects of an inflow of low-skilled workers into an economy where there is capital accumulation and two types of agents. We find that there are substantial dynamic effects following unexpected migrations with adjustments that resemble those triggered by a sudden disruption of the capital stock. We look at the interrelations between these dynamic effects and three different fiscal systems for the redistribution of income and find that these schemes can change the dynamics and lead to prolonged periods of adjustments. The aggregate welfare implications are sensitive to the welfare system: while there are welfare gains without redistribution, these gains may be turned into costs when the state engages in redistribution.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 248.
Date of creation: Jul 1997
Date of revision: Dec 1997
Contact details of provider:
Web page: http://www.econ.upf.edu/
Migration; business cycles; heterogeneous agents; the welfare state;
Other versions of this item:
- Canova, Fabio & Ravn, Morten O., 1998. "Crossing the Rio Grande: Migrations, Business Cycles and the Welfare State," CEPR Discussion Papers 2040, C.E.P.R. Discussion Papers.
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- F20 - International Economics - - International Factor Movements and International Business - - - General
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Juan A. Rojas, 2003.
"On The Interaction Between Education And Social Security,"
Economics Working Papers
we033511, Universidad Carlos III, Departamento de Economía.
- Juan A. Rojas, 2004. "On the Interaction between Education and Social Security," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(4), pages 932-957, October.
- Canova, Fabio & Ravn, Morten O., 1998.
"The Macroeconomic Effects of German Unification: Real Adjustments and the Welfare State,"
CEPR Discussion Papers
2038, C.E.P.R. Discussion Papers.
- Fabio Canova & Morten Ravn, 2000. "The Macroeconomic Effects of German Unification: Real Adjustments and the Welfare State," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(3), pages 423-460, July.
- Fabio Canova & Morten O. Ravn, 2000. "The macroeconomic effects of German unification: Real adjustments and the welfare state," Economics Working Papers 442, Department of Economics and Business, Universitat Pompeu Fabra.
- Storesletten, Kjetil, 2001.
"Fiscal Implications of Immigration - A Net Present Value Calculation -,"
701, Stockholm University, Institute for International Economic Studies.
- Kjetil Storesletten, 2003. "Fiscal Implications of Immigration-A Net Present Value Calculation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(3), pages 487-506, 09.
- Juan A. Rojas, 2002. "Immigration And The Pension System In Spain," Economics Working Papers we023916, Universidad Carlos III, Departamento de Economía.
- Casarico, Alessandra & Devillanova, Carlo, 2003. "Social security and migration with endogenous skill upgrading," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 773-797, March.
- Rojas, Juan A., . "Immigration and the pension system in Spain," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/277, Universidad Carlos III de Madrid.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.