The immigration surplus revisited in a general equilibrium model with endogenous growth


Drinkwater, Stephen, Levine, Paul, Lotti, Emanuela and Pearlman, Joseph (2007) The immigration surplus revisited in a general equilibrium model with endogenous growth. Journal of Regional Science, 47, (3), 569-601. (doi:10.1111/j.1467-9787.2007.00521.x).

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Description/Abstract

We revisit the influential work of Borjas (1995) on the economic gain to the host population from immigration—“the immigration surplus.” We develop his analysis by using a general equilibrium endogenous growth model with endogenous capital and several sectors, including an R&D sector driving growth. Skilled immigration leads to a bigger R&D sector share resulting in higher long-term growth. If skilled labor and physical capital are complements, this growth gain increases. Growth effects on the immigration surplus dominate the purely static effects of Borjas, but are not sufficient to eliminate the emergence of losers (skilled natives) within the host population.

Item Type: Article
ISSNs: 0022-4146 (print)
1467-9787 (electronic)
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: 174539
Date Deposited: 14 Feb 2011 12:43
Last Modified: 27 Mar 2014 19:21
URI: http://eprints.soton.ac.uk/id/eprint/174539

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