 The Immigration Surplus Revisited in a General Equilibrium Model with Endogenous GrowthPaul Levine (p.levine@surrey.ac.uk), Emanuela Lotti (e.lotti@soton.ac.uk) and Joseph Pearlman No 203, School of Economics Discussion Papers from School of Economics, University of Surrey Abstract: We revisit the work of Borjas (1995) which has provided an influential positive theory of immigration policy. An important feature of his framework is the focus on the skill-composition of immigrants and we retain this feature in our paper. Our contribution to this literature is to extend his analysis in a number of directions. First, we study the immigration surplus in the context of a general equilibrium model in which capital is endogenous and the welfare of the indigenous population is set out explicitly. Second, we introduce several sectors into the model so that changing the skill composition leads to changes in sector shares. Third, related to the second development, we introduce and R&D sector and develop a model with long-term endogenous growth. The result is that growth effects on the Immigration Surplus come to dominate the purely static effects in the original analysis of Borjas, but they are not sufficient to eliminate the emergence of losers among the section of natives competing with immigrants in the labour market. Keywords: immigration surplus; economic growth; income distribution (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sur:surrec:0203 Access Statistics for this paper More papers in School of Economics Discussion Papers from School of Economics, University of Surrey Contact information at EDIRC. |
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