IMMIGRATION AND UNEMPLOYMENT: A MACROECONOMIC APPROACH
Takehiro Kiguchi and
Andrew Mountford ()
Macroeconomic Dynamics, 2019, vol. 23, issue 4, 1313-1339
This paper analyzes the effects of an unanticipated increase in immigration in a macroeconomic model with search and matching frictions. It shows how an immigration shock can lead to a temporary increase in unemployment under a variety of conditions and that this is qualitatively consistent with the responses from a VAR estimated on postwar US data.
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