EconPapers    
Economics at your fingertips  
 

Welfare effects of illegal immigration

Theodore Palivos

Discussion Paper Series from Department of Economics, University of Macedonia

Abstract: This paper analyzes the welfare effect of illegal immigration on the host country within a dynamic general equilibrium framework and shows that it is positive for two reasons. First, immigrants are paid less than their marginal product and second, following an increase in immigration, domestic households find it optimal to increase their holdings of capital. It is also shown that dynamic inefficiency may arise, despite the fact that the model is of the Ramsey type. Nevertheless, the introduction of a minimum wage, which leads to job competition between domestic unskilled workers and immigrants reverses all of the above results.

Keywords: Economic Growth; Illegal Immigration (search for similar items in EconPapers)
JEL-codes: F2 O4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mig
Date: 2007-12, Revised 2007-12
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://aphrodite.uom.gr/econwp/pdf/immigration1.pdf

Related works:
Journal Article: Welfare effects of illegal immigration (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:mcd:mcddps:2007_01

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, University of Macedonia
Series data maintained by Theodore Panagiotidis ().

 
Page updated 2017-06-24
Handle: RePEc:mcd:mcddps:2007_01