Is tightening immigration policy good for workers in the receiving economy?

Akira Yakita

Asia-Pacific Journal of Regional Science, 2021, vol. 5, issue 3, No 10, 975-991

Abstract: Abstract Long-term effects of tightening immigration policies on native workers of a host country are analyzed using a small open overlapping-generation model. Such a policy is intended to protect native workers from losing income and possibly jobs. Results demonstrate that a stricter policy raises the unskilled wage rate as expected, but it might also raise the skilled-wage rate even if skilled and unskilled labors are (technically) complementary. Such a policy also lowers the average education level of the country. If skilled and unskilled labors are sufficiently substitutable, then the policy might instead increase immigration inflows to the host country.

Keywords: Education; Immigration policy; Skilled–unskilled labor complementarity (search for similar items in EconPapers)
JEL-codes: D15 F22 F66 O24 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s41685-021-00192-w

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