Immigration, Wages, and Growth in the Host Nations
This paper investigates the impact of skilled immigrants on the welfare the host natives. By employing the idea of induced technical change, and the skilled wage premium, this paper tries to link skilled immigration with observed rise in college enrolment, rise in skilled wages, and further acceleration of skilled wage premium. Through creation of demand for skill complimenting capital goods, skilled immigration raise the incentive for skill directed technical change which fuel up skilled wage in North, international wage differential, and the incentive for human capital formation. The results of the model are consistent with broad empirical regularities observed for three decades or more.
|Date of creation:||2007|
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- Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 563-606.
- Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1055-1089.
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