Optimal Immigration, Assimilation and Trade
The paper develops a general equilibrium model of migration, assimilation and trade, using a random matching framework of culture and trade. The market equilibrium and the social plannerÕs solution are contrasted and policy implications are given. The model predicts that the presence of immigrants who do not assimilate into the mainstream culture is economically inefficient, but whether such migration occurs depends on the underlying parameters. Because of the endogeneity of the migration decision, care must be taken to select the optimal policy instruments. In particular, subsidizing assimilation or auctioning immigration permits do not achieve the first best. Instead, a mix of selective immigration, border control and aid to the source country can be used to promote efficiency.
|Date of creation:||01 Apr 2001|
|Contact details of provider:|| Postal: Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA|
Web page: http://fmwww.bc.edu/EC/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade, and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, September.
- Istvan Konya, 2002.
"Modeling cultural barriers in international trade,"
Boston College Working Papers in Economics
547, Boston College Department of Economics.
- Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
- Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
- Edward P. Lazear, 1995.
"Culture and Language,"
NBER Working Papers
5249, National Bureau of Economic Research, Inc.
- James R. Markusen & Stephen Zahniser, 1997. "Liberalization and Incentives for Labor Migration: Theory with Applications to NAFTA," NBER Working Papers 6232, National Bureau of Economic Research, Inc.
- Kjetil Storesletten, 2000.
"Sustaining Fiscal Policy through Immigration,"
Journal of Political Economy,
University of Chicago Press, vol. 108(2), pages 300-323, April.
- Storesletten, Kjetil, 1998. "Sustaining Fiscal Policy Through Immigration," Seminar Papers 664, Stockholm University, Institute for International Economic Studies.
- Kjetil Storesletten, "undated". "Sustaining Fiscal Policy Through Immigration," Homapage Papers _005, Stockholm University, Institute for International Economic Studies.
- Alan J. Auerbach & Philip Oreopoulos, 1999. "Generational Accounting and Immigration in the United States," NBER Working Papers 7041, National Bureau of Economic Research, Inc.
- Burda, Michael & Wyplosz, Charles, 1992.
"Human capital, investment and migration in an integrated Europe,"
European Economic Review,
Elsevier, vol. 36(2-3), pages 677-684, April.
- Burda, Michael C & Wyplosz, Charles, 1991. "Human Capital, Investment and Migration in an Integrated Europe," CEPR Discussion Papers 614, C.E.P.R. Discussion Papers.
- George J. Borjas, 1987.
"Self-Selection and the Earnings of Immigrants,"
NBER Working Papers
2248, National Bureau of Economic Research, Inc.
- David Card & John E. DiNardo, 2000.
"Do Immigrant Inflows Lead to Native Outflows?,"
NBER Working Papers
7578, National Bureau of Economic Research, Inc.
- John F. Helliwell, 1997. "National Borders, Trade and Migration," NBER Working Papers 6027, National Bureau of Economic Research, Inc.
- Casella, Alessandra & Rauch, James E, 1998.
"Overcoming Informational Barriers to International Resource Allocation: Prices and Group Ties,"
CEPR Discussion Papers
1978, C.E.P.R. Discussion Papers.
- James E. Rauch & Alessandra Casella, 1998. "Overcoming Informational Barriers to International Resource Allocation: Prices and Group Ties," NBER Working Papers 6628, National Bureau of Economic Research, Inc.
- Gordon H. Hanson & Matthew J. Slaughter, 1999. "The Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States," NBER Working Papers 7074, National Bureau of Economic Research, Inc.
- Daniel Trefler, 1997. "Immigrants and Natives in General Equilibrium Trade Models," NBER Working Papers 6209, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:boc:bocoec:507. 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: (Christopher F Baum)
If references are entirely missing, you can add them using this form.