Migration, skill composition and growth


Kim, Young-Bae, Levine, Paul and Lotti, Emanuela (2010) Migration, skill composition and growth. Southampton, GB, University of Southampton, 35pp. (Discussion Papers in Economics and Econometrics, 1015).

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Description/Abstract

The UK, with its relatively liberal immigration policies following recent enlargements, has been one of the main recipients of migrants from new EU member states. This paper poses the questions: what is the effect of immigration on a receiving economy such as the UK? Is the effect beneficial or adverse for growth? How differently would skilled (or unskilled) migration affect both receiving and sending economies? What factors would contribute to immigration/emigration benefits/costs and economic growth driven by migration? Who are the winners and losers in both the sending and host regions? We utilize an endogenous growth two-bloc model with labour mobility of different skill compositions to address these questions. We show that migration, in general, is beneficial to the receiving country and increases the world growth rate. With remittances, the sending country in aggregate can also benefit. The only exception is in the case of unskilled migration, which can actually have a detrimental impact on the world growth rate. Winners are migrants, and the skill group in the region that sees its relative size decrease.

Item Type: Monograph (Discussion Paper)
ISSNs: 0966-4246 (electronic)
Related URLs:
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
J Political Science > JV Colonies and colonization. Emigration and immigration. International migration
Divisions: University Structure - Pre August 2011 > School of Social Sciences > Economics
ePrint ID: 162653
Date Deposited: 25 Aug 2010 11:28
Last Modified: 27 Mar 2014 19:17
Publisher: University of Southampton
URI: http://eprints.soton.ac.uk/id/eprint/162653

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