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

Abstract: 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
Date: 2008-09
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iset.tsu.ge/files/009-08.pdf First version, 2008 (application/pdf)

Related works:
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) HTML/Text

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 ).