Abstract:
In this paper the impact of migration on competitiveness and long-term growth is studied within a macrotheoretic model. To obtain endogenous growth, a research sector is integrated in the theory. Technical progress is employment-enlarging or labour-saving according to economic conditions. As a result it is shown that - given realistic values for the parameters - immigration of skilled labour increases the domestic growth rate whereas immigration of unskilled labour is not favorable for growth. To maintain and improve the domestic competitiveness a migration policy emphasizing the longer term and leading to a better balance in skills would be desirable for Switzerland.