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The simple analytics of optimal growth with illegal migrants

Author

Listed:
  • Hazari, Bharat R.
  • Sgro, Pasquale M.

Abstract

This paper analyses the impact of illegal migration on the optimal path of domestic (resident) consumption. The analysis draws two importants conclusions. First, if illegal migrants and domestic labour are perfect substitutes, illegal migration necessarily lowers the long-run per capital consumption of domestic residents. Second, if illegal migrants and domestic labour are imperfect substitutes, the effect on the long-run per capital domestic consumption is ambiguous, however, in the Cobb-douglas case, the result is clear cut an per capita domestic consumption rises as a result of illegal migration.

Suggested Citation

  • Hazari, Bharat R. & Sgro, Pasquale M., 2003. "The simple analytics of optimal growth with illegal migrants," CEPREMAP Working Papers (Couverture Orange) 0301, CEPREMAP.
  • Handle: RePEc:cpm:cepmap:0301
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    File URL: http://www.cepremap.fr/depot/couv_orange/co0301.pdf
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    References listed on IDEAS

    as
    1. Bharat R. Hazari & Pasquale M. Sgro, 2000. "Illegal Migration, Border Enforcement, and Growth," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 258-267, October.
    2. Hillman, Arye L. & Weiss, Avi, 1999. "A theory of permissible illegal immigration," European Journal of Political Economy, Elsevier, vol. 15(4), pages 585-604, November.
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    Citations

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    Cited by:

    1. Alberto Petrucci, 2015. "Deviating from the Friedman Rule: A Good Idea with Illegal Immigration?," Working Papers CELEG 1502, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    2. Carmen Camacho & Fabio Mariani & Luca Pensieroso, 2017. "Illegal immigration and the shadow economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1050-1080, December.
    3. Andri Chassamboulli & Theodore Palivos, 2014. "A Search‐Equilibrium Approach To The Effects Of Immigration On Labor Market Outcomes," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55, pages 111-129, February.
    4. Theodore Palivos & Jianpo Xue & Chong K. Yip, 2011. "Illegal Immigration, Factor Substitution and Economic Growth," Discussion Paper Series 2011_10, Department of Economics, University of Macedonia, revised Jun 2011.
    5. Gemma Larramona & Jesus Clemente & Pedro Garcia-Castrillo, 2004. "Illegal immigration and a heterogeneous labour force. When can quotas generate an internal conflict?," ERSA conference papers ersa04p125, European Regional Science Association.
    6. Andri Chassamboulli & Theodore Palivos, 2010. "“Give me your Tired, your Poor,” so I can Prosper: Immigration in Search Equilibrium," University of Cyprus Working Papers in Economics 12-2010, University of Cyprus Department of Economics.
    7. Ioana Viasu, 2014. "Migrant Labor, Unemployment and Optimal Growth," Computational Methods in Social Sciences (CMSS), "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences, vol. 2(2), pages 30-38, December.
    8. Cheuk Yin Ho, 2007. "Illegal migration and economic growth: simulation analysis in an international context," Economics Bulletin, AccessEcon, vol. 6(41), pages 1-13.
    9. Moy, Hon Man & Yip, Chong K., 2006. "The simple analytics of optimal growth with illegal migrants: A clarification," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2469-2475, December.
    10. Theodore Palivos & Chong K. Yip, 2007. "Illegal Immigration in a Heterogeneous Society," Departmental Working Papers _188, Chinese University of Hong Kong, Department of Economics.
    11. Theodore Palivos, 2009. "Welfare effects of illegal immigration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 131-144, January.
    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. Djajić, Slobodan, 2013. "Barriers to immigration and the dynamics of emigration," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 41-52.
    14. repec:ces:ifodic:v:9:y:2011:i:3:p:60-67 is not listed on IDEAS
    15. Theodore Palivos & Chong Yip, 2010. "Illegal immigration in a heterogeneous labor market," Journal of Economics, Springer, vol. 101(1), pages 21-47, September.
    16. Parello, Carmelo Pierpaolo, 2012. "Indeterminacy in a dynamic small open economy with international migration," MPRA Paper 40013, University Library of Munich, Germany.
    17. Djajić, Slobodan & Vinogradova, Alexandra, 2013. "Undocumented migrants in debt," Labour Economics, Elsevier, vol. 21(C), pages 15-24.
    18. repec:ebl:ecbull:v:6:y:2007:i:41:p:1-13 is not listed on IDEAS
    19. repec:bla:reviec:v:25:y:2017:i:5:p:1017-1045 is not listed on IDEAS
    20. Jesús Clemente & Gemma Larramona, 2012. "Can a legalization programme for immigrants generate conflict among natives?," Chapters,in: Migration Impact Assessment, chapter 11, pages 365-386 Edward Elgar Publishing.
    21. Maria Concetta Chiuri & Giuseppe De Arcangelis & Giovanni Ferri, 2007. "Crisis in the coutries of origen and illegal immigration into europe via Italy," Working Papers 77, Sapienza University of Rome, CIDEI.
    22. Gemma Larramona & Jesus Clemente & Fernando Pueyo, 2005. "Politics of immigration - quotas of entrance and hidden economy," ERSA conference papers ersa05p536, European Regional Science Association.
    23. repec:ces:ifodic:v:9:y:2011:i:3:p:16752111 is not listed on IDEAS

    More about this item

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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