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Growth and welfare effects of world migration

Growth and welfare effects of world migration
Growth and welfare effects of world migration
Using a two-bloc endogenous growth model calibrated to two generic sending and receiving countries of equal size, we assess the growth and welfare impact of world migration flows of different skill compositions. The sending country (East) has a lower total factor productivity and a lower endowment of skilled labour. Migration can induce two growth-enhancing effects: an efficiency effect from the more efficient use of labour in the receiving country (West) and a sectoral reallocation effect from a fall in the host country skilled–unskilled wage rates. Despite growth gains, there are both winners (migrants, the representative Western non-migrant household) and losers (the representative Eastern household remaining). Remittances can see the latter group joining the winners.
0036-9292
615-643
Levine, Paul
6978934c-ecab-4709-a683-6114445c3fc5
Lotti, Emanuela
e3a301e8-bfbe-4ac7-ba41-5020251171a5
Pearlman, Joseph
50ac8702-c12a-4cdd-ad79-d39d61f9eeb4
Pierse, Richard
2e309f5e-d721-4aee-9693-35554a4b911e
Levine, Paul
6978934c-ecab-4709-a683-6114445c3fc5
Lotti, Emanuela
e3a301e8-bfbe-4ac7-ba41-5020251171a5
Pearlman, Joseph
50ac8702-c12a-4cdd-ad79-d39d61f9eeb4
Pierse, Richard
2e309f5e-d721-4aee-9693-35554a4b911e

Levine, Paul, Lotti, Emanuela, Pearlman, Joseph and Pierse, Richard (2010) Growth and welfare effects of world migration. Scottish Journal of Political Economy, 57 (5), 615-643. (doi:10.1111/j.1467-9485.2010.00533.x).

Record type: Article

Abstract

Using a two-bloc endogenous growth model calibrated to two generic sending and receiving countries of equal size, we assess the growth and welfare impact of world migration flows of different skill compositions. The sending country (East) has a lower total factor productivity and a lower endowment of skilled labour. Migration can induce two growth-enhancing effects: an efficiency effect from the more efficient use of labour in the receiving country (West) and a sectoral reallocation effect from a fall in the host country skilled–unskilled wage rates. Despite growth gains, there are both winners (migrants, the representative Western non-migrant household) and losers (the representative Eastern household remaining). Remittances can see the latter group joining the winners.

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Published date: November 2010

Identifiers

Local EPrints ID: 174529
URI: http://eprints.soton.ac.uk/id/eprint/174529
ISSN: 0036-9292
PURE UUID: d3e3d5c7-764e-4e41-b23b-8978ffa6d2c2

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Date deposited: 14 Feb 2011 12:46
Last modified: 14 Mar 2024 02:34

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Contributors

Author: Paul Levine
Author: Emanuela Lotti
Author: Joseph Pearlman
Author: Richard Pierse

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