On the welfare implications of temporary and permanent immigration
This paper uses a two-sector model of a fully-employed open economy, producing traded and nontraded goods, to examine how temporary and permanent immigration affect the host country. The focus is on the implications for welfare, factor rewards, and relative prices of traded goods in terms of non-traded goods. What distinguishes temporary from permanent migrants in the present setting is their pattern of consumption, the bundle of productive factors they bring to the host country, and the magnitude of remittances they send back to the source country. Due to these differences, admitting a temporary rather than a permanent migrant is shown to reduce the scarcity of labour relative to capital, raise the relative price of traded goods in terms of non-traded goods, and improve the level of welfare of the native population in the host country.
Volume (Year): 40 (2009)
Issue (Month): 5 ()
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References listed on IDEAS
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- Thomas Bauer & Mathias Sinning, 2011.
"The savings behavior of temporary and permanent migrants in Germany,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 24(2), pages 421-449, April.
- Bauer, Thomas & Sinning, Mathias, 2005. "The Savings Behaviour of Temporary and Permanent Migrants in Germany," CEPR Discussion Papers 5102, C.E.P.R. Discussion Papers.
- Bauer, Thomas K. & Sinning, Mathias, 2005. "The Savings Behavior of Temporary and Permanent Migrants in Germany," RWI Discussion Papers 29, RWI - Leibniz-Institut für Wirtschaftsforschung.
- Bauer, Thomas K. & Sinning, Mathias, 2005. "The Savings Behavior of Temporary and Permanent Migrants in Germany," IZA Discussion Papers 1632, Institute for the Study of Labor (IZA).
- repec:zbw:rwidps:0029 is not listed on IDEAS
- Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
- Christian Dustmann & Josep Mestres, 2009. "Remittances and Temporary Migration," CReAM Discussion Paper Series 0909, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Rivera-Batiz, Francisco L., 1982. "International migration, non-traded goods and economic welfare in the source country," Journal of Development Economics, Elsevier, vol. 11(1), pages 81-90, August. Full references (including those not matched with items on IDEAS)