The simple analytics of optimal growth with illegal migrants

Bharat R. Hazari () and Pasquale M Sgro ()

CEPREMAP Working Papers (Couverture Orange) from CEPREMAP

Abstract: This paper analyses the impact of illegal migration on the optimal path of domestic (resident) consumption. The analysis draws two importants conclusions. First, if illegal migrants and domestic labour are perfect substitutes, illegal migration necessarily lowers the long-run per capital consumption of domestic residents. Second, if illegal migrants and domestic labour are imperfect substitutes, the effect on the long-run per capital domestic consumption is ambiguous, however, in the Cobb-douglas case, the result is clear cut an per capita domestic consumption rises as a result of illegal migration.

JEL-codes: F2 O4 (search for similar items in EconPapers)
Date: 2003
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