Migrant Labor, Unemployment and Optimal Growth
Computational Methods in Social Sciences (CMSS), 2014, vol. 2, issue 2, 30-38
One of the arguments against migrant labor is that it has negative ef- fect on the employment of domestic labor. The question is now if the immigration has also negative effects on the other variables of the econ- omy. To examine these effects we develop an optimal growth model with migration and unemployment and then we analyze these effects, restricting our analysis to the steady state. We introduce a simplify- ing hypothesis concerning the skill level of human capital. We assume that the average skill level of domestic employed labor differs from the average skill level of migrant labor, but the two kinds of labor grow at the same constant rate. We prove that the immigration process could have both positive and negative effects on consumption, human capital and physical capital, depending on the skill level of the migrant labor. The numerical simulations confirm our theoretical results.
Keywords: immigration; optimal growth; unemployment rate. (search for similar items in EconPapers)
JEL-codes: F2 J6 O4 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://cmss.univnt.ro/wp-content/uploads/vol/split ... _issue_2_art.004.pdf First version, 2014 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ntu:ntcmss:vol2-iss2-14-030
Access Statistics for this article
Computational Methods in Social Sciences (CMSS) is currently edited by Bogdan Oancea
More articles in Computational Methods in Social Sciences (CMSS) from "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Stefan Ciucu ( this e-mail address is bad, please contact ).