A Theory on the Economic Impacts of Immigration

Taiji Harashima

MPRA Paper from University Library of Munich, Germany

Abstract: The standard view on the economic impact of immigration has been criticized for its inability to solve the “immigration policy puzzle.” It also has a problem in that the “net” income of heterogeneous workers is equalized. These problems arise because the standard view generally depends on a production function in which the elasticity of substitution between heterogeneous workers is constant. This paper constructs an alternative production function in which the elasticity of substitution between heterogeneous workers is not constant and is instead based on a model of total factor productivity. The alternative view presented based on this production function indicates that an “open door” policy is not necessarily economically optimal for host countries under some conditions

Keywords: Immigration; Immigration policy; Production function (search for similar items in EconPapers)
JEL-codes: D24 E23 E24 F22 F62 F66 F68 (search for similar items in EconPapers)
Date: 2017-05-05
New Economics Papers: this item is included in nep-eff, nep-int, nep-mac and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:78821

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