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Modelling an Immigration Shock

Author

Listed:
  • Boldrin, Michelle
  • Montes, Ana

    (Fundamentos del Análisis Económico)

Abstract

In this paper we model an overlapping generation economy affected by an unexpected immigration shock and figure out how household would insure against "immigration risk" efficiently. We use the model to study the impact of immigration in (i) the welfare of different generations (ii) the distributions of income among factors of production (iii) the optimal design of the interegenartional welfare state. In particular we construct a system of public education and public pensions that mimics the efficient complete market allocation. We also show the impact of immigration shock in a small open economy.In this case the external capital flows can act as sbustitutes for the miising private insurance markets.Our analysis delivers a set of predictions that we find useful to understand some aspects of the Spanish experience between 1996 and 20007.

Suggested Citation

  • Boldrin, Michelle & Montes, Ana, 2013. "Modelling an Immigration Shock," UMUFAE Economics Working Papers 36663, DIGITUM. Universidad de Murcia.
    • Handle: RePEc:mur:wpaper:36663
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    Cited by:

    1. Bohn, Henning & Lopez-Velasco, Armando R., 2019. "Immigration And Demographics: Can High Immigrant Fertility Explain Voter Support For Immigration?," Macroeconomic Dynamics, Cambridge University Press, vol. 23(5), pages 1815-1837, July.
    2. Agustín Arias & Juan Guerra-Salas, 2019. "Immigration in Emerging Countries: A Macroeconomic Perspective," Working Papers Central Bank of Chile 857, Central Bank of Chile.

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    More about this item

    Keywords

    Seguridad Social; Capital Humano; Modelos de generaciones solapadas; Risk sharing; Inmigración;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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