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Kaldorian Disaggregation, Temporary Migration and Domestic Welfare
Author(s) -
Lai Jennifer T.,
Hazari Bharat R.,
Mohan Vijay
Publication year - 2016
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/rode.12254
Subject(s) - welfare , immigration , economics , labour economics , demographic economics , market economy , political science , law
We build a model with two agents: domestic residents and temporary immigrants. The model incorporates Kaldorian disaggregation, with the two groups consuming different goods produced in the economy. It is established that, under certain conditions, an increase in immigrant labor lowers the welfare of the domestic residents. This runs against conventional wisdom that temporary immigration enhances the welfare of domestic residents.