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Immigration, Human Capital and Growth in the Host Country: Evidence from Pooled Country Data

Author

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  • Dolado, Juan J.
  • Goria, Alessandra
  • Ichino, Andrea

Abstract

Immigration as a source of population growth is traditionally represented by neoclassical growth models with negative output and growth effects in per capita terms for the host economy. The reasoning behind this is the assumption of decreasing returns to labour in the production function. This paper explores how different these effects can be when the human capital brought in by immigrants upon arrival is explicitly considered in the Solow growth model augmented by human capital relative to natives. Both descriptive and econometric evidence for a sample of OECD economies is presented in order to evaluate the magnitude of such effects.

Suggested Citation

  • Dolado, Juan J. & Goria, Alessandra & Ichino, Andrea, 1993. "Immigration, Human Capital and Growth in the Host Country: Evidence from Pooled Country Data," CEPR Discussion Papers 875, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:875
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    References listed on IDEAS

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    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    3. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    4. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-985, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Cross-Country Growth; Human Capital; Immigration; Solow's Model;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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