Migration, community networks and welfare in neoclassical growth models

Carmelo Parello and Bright Isaac Ikhenaode

Journal of Macroeconomics, 2021, vol. 70, issue C

Abstract: This paper proposes a Ramsey-Like model of growth with endogenous migration to study the effects of migration networks on the macroeconomy and welfare of hosting economies. In the model, migration is assumed to be made of two different components: a first, forward-looking component in which the rate of net migration depends on the wage gap between countries; a second, backward-looking component in which in-migration depends on the immigration history of the destination country through the formation of immigrant networking. We find that the model exhibits a unique saddle-path steady-state equilibrium and that introducing pro-immigration policies aimed at enhancing community networks have asymmetric impacts on the welfare level of natives and immigrants that hinge on the relative size of immigrant communities.

Keywords: International migration; Neoclassical growth; Migration networks (search for similar items in EconPapers)
JEL-codes: E1 F1 O4 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:70:y:2021:i:c:s0164070421000689

DOI: 10.1016/j.jmacro.2021.103369

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