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A computable general equilibrium assessment of the impact of illegal immigration on the Greek economy

Author

Listed:
  • Alexander H. Sarris

    (Department of Economics, University of Athens, 8 Pesmazoglou street, GR-10559 Athens, Greece Fax: 8031571; e-mail: asarris@hol.gr, stazog@hol.gr))

  • Stavros Zografakis

    (Department of Economics, University of Athens, 8 Pesmazoglou street, GR-10559 Athens, Greece Fax: 8031571; e-mail: asarris@hol.gr, stazog@hol.gr))

Abstract

Recent years have witnessed a large inflow of illegal immigrants into Greece. Past surveys have examined the extent and nature of this immigration, but have not analysed the impacts on the economy. This paper presents a theoretical and empirical analysis of the impact of illegal immigration on the economy of the small open type, like that of Greece. The theoretical analysis uses a small stylised model to show that there is no unequivocal case for illegal immigration to lead to declines in the real wages of unskilled labour and increases in the real wages of skilled. Empirical analysis using a recently constructed applied general equilibrium model for Greece, adapted to the purpose in hand, shows that the inflow of illegal immigrants has resulted in declines of the real disposable incomes of two classes of households among the fifteen modelled, namely those headed by an unskilled person, that are poor and middle income. All other households gain. The ones who lose, however, make up about 37% of the Greek population. The distributional effects are moderated, however, when rigidities in the labour market are simulated.

Suggested Citation

  • Alexander H. Sarris & Stavros Zografakis, 1999. "A computable general equilibrium assessment of the impact of illegal immigration on the Greek economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 155-182.
    • Handle: RePEc:spr:jopoec:v:12:y:1999:i:1:p:155-182
    Note: Received: 16 May 1997/Accepted: 18 March 1998
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    Citations

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    Cited by:

    1. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
    2. Marko Petrovic & Bulent Ozel & Andrea Teglio & Marco Raberto & Silvano Cincotti, 2017. "Eurace Open: An agent-based multi-country model," Working Papers 2017/09, Economics Department, Universitat Jaume I, Castellón (Spain).
    3. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    4. Alessandra Venturini, 2012. "Methodological Aspects of Research on Flows Human Capital Flows: A survey," RSCAS Working Papers carim2012/01, European University Institute.
    5. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, February.
    6. Cholezas, Ioannis & Tsakloglou, Panos, 2008. "The Economic Impact of Immigration in Greece: Taking Stock of the Existing Evidence," IZA Discussion Papers 3754, Institute of Labor Economics (IZA).
    7. Pia M. Orrenius & Madeline Zavodny, 2016. "Irregular immigration in the European Union," Working Papers 1603, Federal Reserve Bank of Dallas.
    8. Javier Ferri & Antonio G. Gómez-Plana & Joan A. Martín-Montaner, 2006. "Illegal immigration booms and welfare in the host country," European Journal of Population, Springer;European Association for Population Studies, vol. 22(4), pages 353-370, December.
    9. repec:ces:ifodic:v:9:y:2011:i:3:p:16752111 is not listed on IDEAS
    10. Heather Dickey, 2014. "The Impact Of Migration On Regional Wage Inequality: A Semiparametric Approach," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 893-915, November.
    11. Franck Düvell, 2011. "Irregular Immigration, Economics and Politics," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(03), pages 60-67, October.
    12. Franck Düvell, 2011. "Irregular Immigration, Economics and Politics," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(3), pages 60-68, October.
    13. Chletsos, Michael & Roupakias, Stelios, 2012. "The impact of immigration on the greek labor market," MPRA Paper 39872, University Library of Munich, Germany.
    14. repec:ces:ifodic:v:9:y:2011:i:3:p:60-67 is not listed on IDEAS
    15. Pappas, Nikos, 2008. "Can Migrants save Greece from Ageing? A Computable General Equilibrium Approach using G-AMOS," SIRE Discussion Papers 2008-04, Scottish Institute for Research in Economics (SIRE).

    More about this item

    Keywords

    Immigration · Greece · labour markets · applied general equilibrium;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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