Immigration and Welfare for the Host Economy with Imperfect Competition

Chi-Chur Chao and Eden Yu

Journal of Regional Science, 2002, vol. 42, issue 2, 327-338

Abstract: In the literature, the beneficial result of immigration to the host country relies on the assumption of perfect competition in the goods market. However, for an economy characterized by imperfect competition, immigration of unskilled workers can be welfare‐reducing. The entry of skilled workers is nevertheless welfare‐enhancing under a plausible factor‐intensity condition.

Date: 2002
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