Immigration and international prices

Marios Zachariadis

Journal of International Economics, 2012, vol. 87, issue 2, 298-311

Abstract: This paper considers the relation between immigration and prices in a number of countries across the world over the period from 1990 to 2006. Immigration is shown to have a negative impact on international relative prices. A 10% increase in the share of immigrant workers in total employment decreases the prices of final products by as much as 3%. Our results suggest that the tendency of this factor of production to relocate to relatively expensive high-wage countries exerts downward pressure on prices of tradeables and non-tradeables there relative to other locations. The effect of immigration on prices is more evident for goods consumed by immigrants as compared to goods produced by immigrants.

Keywords: International factor mobility; International LOP deviations; Immigration; Price convergence (search for similar items in EconPapers)
JEL-codes: E31 F22 F4 J61 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:87:y:2012:i:2:p:298-311

DOI: 10.1016/j.jinteco.2012.01.004

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