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Endogenous Immigration, Human and Physical Capital Formation, and the Immigration Surplus

Isaac Ehrlich (mgtehrl@buffalo.edu) and Yun Pei

No 28504, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We evaluate the economic consequences of immigration in a two-country, two-skill, overlapping-generations framework, where immigration, population, human and physical capital formation, and economic growth are endogenous variables. We go beyond extant literature by integrating physical capital in our model. This enables the derivation of new insights about the induced-immigration effects of exogenous triggers, including pull and push factors and policy variables, on the dynamic evolution of the “immigration surplus” in the short run versus the long run, in destination vs. source countries and in the global economy. The policy shifts we analyze include the easing of constraints on potential migrants’ labor and physical capital mobility, and the role of physical capital endowments. We also discuss the policy implications of asymmetries in the net benefits from immigration across destination and source countries.

JEL-codes: F22 F43 J11 J24 O15 (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-dge, nep-gro, nep-int, nep-lab, nep-mig and nep-opm
Note: DEV EFG LS PE POL
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Citations: View citations in EconPapers (3)

Published as Isaac Ehrlich & Yun Pei, 2021. "Endogenous Immigration, Human and Physical Capital Formation, and the Immigration Surplus," Journal of Human Capital, vol 15(1), pages 34-85.

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