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Immigration, Human Capital Formation and Endogenous Economic Growth

Author

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  • Ehrlich, Isaac

    () (University at Buffalo, SUNY)

  • Kim, Jinyoung

    () (Korea University)

Abstract

Census data from international sources covering 77% of the world's migrant population indicate that the skill composition of migrants in major destination countries, including the US, has been rising over the last four decades. Moreover, the population share of skilled migrants has been approaching or exceeding that of skilled natives. We offer theoretical propositions and empirical tests consistent with these trends via a general-equilibrium model of endogenous growth where human capital, population, income growth and distribution, and migration trends are endogenous. We derive new insights about the impact of migration on long-term income growth and distribution, and the net benefits to natives in both destination and source countries.

Suggested Citation

  • Ehrlich, Isaac & Kim, Jinyoung, 2015. "Immigration, Human Capital Formation and Endogenous Economic Growth," IZA Discussion Papers 9599, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9599
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    13. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    14. Isaac Ehrlich & Jinyoung Kim, 2007. "Social Security and Demographic Trends: Theory and Evidence from the International Experience," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(1), pages 55-77, January.
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    Cited by:

    1. Robert E. Lucas Jr., 2018. "What Was the Industrial Revolution?," Journal of Human Capital, University of Chicago Press, vol. 12(2), pages 182-203.
    2. Isaac Ehrlich & Yun Pei, 2020. "Human Capital as Engine of Growth: The Role of Knowledge Transfers in Promoting Balanced Growth within and across Countries," Asian Development Review, MIT Press, vol. 37(2), pages 225-263, September.
    3. Z. Eylem Gevrek & Pinar Kunt & Heinrich Ursprung, 2019. "Education, Political Discontent, and Emigration Intentions: Evidence from a Natural Experiment in Turkey," CESifo Working Paper Series 7710, CESifo.
    4. Pierre-Andr'e Chiappori & Alfred Galichon & Bernard Salani'e, 2021. "On Human Capital and Team Stability," Papers 2102.06487, arXiv.org.

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    More about this item

    Keywords

    immigration; human capital formation; endogenous economic growth; migrants; natives; population; long-term income;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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