IDEAS home Printed from
   My bibliography  Save this article

On the welfare implications of temporary and permanent immigration


  • Slobodan Djajić

    () (The Graduate Institute, Geneva)


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.

Suggested Citation

  • Slobodan Djajić, 2009. "On the welfare implications of temporary and permanent immigration," Bank i Kredyt, Narodowy Bank Polski, vol. 40(5), pages 49-60.
  • Handle: RePEc:nbp:nbpbik:v:40:y:2009:i:5:p:49-60

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. 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.
    2. repec:zbw:rwidps:0029 is not listed on IDEAS
    3. Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
    4. 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)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Paweł Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," RSCAS Working Papers 2013/79, European University Institute.
    2. Kaczmarczyk, Pawel, 2015. "Burden or Relief? Fiscal Impacts of Recent Ukrainian Migration to Poland," IZA Discussion Papers 8779, Institute for the Study of Labor (IZA).

    More about this item


    international migration; guest workers; remittances;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F35 - International Economics - - International Finance - - - Foreign Aid


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbp:nbpbik:v:40:y:2009:i:5:p:49-60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michał Wieloch). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.