Effects of migration: An applied general equilibrium analysis for Belgium
To get an accurate picture of the effects of migration one needs to take into account all the channels through which immigration affects the economy. Applied general equilibrium analysis seems to be an appropriate tool. The first part of this paper describes in detail the construction and calibration of an applied general equilibrium model. The idea is to help readers interested in building an AGE model themselves to find their way into a widely used instrument for policy analysis. Although the model in this paper is built to simulate the impact of immigration in Belgium it can be applied or adapted to other countries looking at other policy questions. The second part of the paper simulates the effects of immigration within the AGE model. The results show that immigration may lead to impacts while macroeconomically beneficial, have significant adverse distributional implications. It appears that unskilled workers are disadvantaged by the inflow of immigrant households. They are confronted with a severe decline in factor income due to increased competition in the less skilled segment of the labour market. Unskilled households therefore experience a decline in real disposable income. On the contrary, households that are headed by skilled workers appear to benefit from immigration. On the production level all sectors can increase their total output due to immigration. The two sectors gaining most are agriculture and industrial production thereby increasing their market shares. Although construction also uses relatively more less skilled labour its increase in total output is not large enough to improve its market share probably because of the small share in household consumption. Other sectors with decreasing market shares are services and energy which use relatively more higher skilled labour and thus face increasing production costs.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: Prinsstraat 13, B-2000 Antwerpen|
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ant:wpaper:2003015. 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: (Joeri Nys)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.