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Recession, terms of trade, and immigrants

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  • Saibal Kar

Abstract

The current literature does not adequately analyze how economic crisis affects employment of immigrants in host countries. It is generally believed that immigrants lose jobs and return home during recession. We show that recession may instead help relatively unskilled immigrants when it leads to terms-of-trade improvement in the host country, and when the unskilled sector is protected by minimum wage regulations. We also derive the condition under which the income gap between natives and immigrants falls.

Suggested Citation

  • Saibal Kar, 2013. "Recession, terms of trade, and immigrants," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 16(4), pages 368-379, December.
    • Handle: RePEc:taf:jecprf:v:16:y:2013:i:4:p:368-379
    DOI: 10.1080/17487870.2013.828612
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    Cited by:

    1. Julio Guzman, 2014. "Social Protection and Private Coping Strategies During Recessions: Evidence from Chile," Working Papers wp_041, Adolfo Ibáñez University, School of Government.

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