Skill-Upgrading and the Saving of Immigrants
Adolfo Cristobal-Campoamor ()
No 009-08, Working Papers from International School of Economics at TSU, Tbilisi, Republic of Georgia
This note derives positive implications about the effect of immigration on labor income and the skill composition of the labor force in receiving economies. The novel mechanism through which immigration affects labor-market outcomes is the availability of new loanable funds for human-capital investment, which results in endogenous skill upgrading. Given their higher training costs in the host economy, immigrants usually do not acquire advanced academic skills, and they accordingly skip the financial costs of education at the college level. As a result, they self-select as net lenders, which reduces the equilibrium interest rates and facilitates the upgrading mostly of new generations of natives. Consequently, the aggregate labor income of natives increases with immigration.
Pages: 15 pages
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://iset.tsu.ge/files/009-08.pdf First version, 2008 (application/pdf)
Working Paper: Skill-Upgrading and the Savings of Immigrants (2006)
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:tbs:wpaper:08-009
Access Statistics for this paper
More papers in Working Papers from International School of Economics at TSU, Tbilisi, Republic of Georgia Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).