Premium
Welfare Effects of Immigration Policies in the Presence of Skilled, Unskilled Labor and Capital Mobility
Author(s) -
Michael Michael S.
Publication year - 2011
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2011.00633.x
Subject(s) - immigration , economics , welfare , labour economics , capital (architecture) , immigration policy , government (linguistics) , labor mobility , market economy , political science , linguistics , philosophy , archaeology , law , history
This paper investigates the welfare consequences of immigration policies in a model with two types of labor, skilled and unskilled, and international capital mobility. The paper examines the effect of government policies, which change the immigration cost and cause immigration of one type of labor, on the welfare of natives, when the other types of labor and/or capital are also mobile. It is shown, for example, in the absence of capital mobility, if skilled and unskilled labor are highly complementary in production, then a decrease in the immigration cost of the net fiscal contributor skilled labor that causes its immigration, decreases the welfare of natives.