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Title: Immigration, Endogenous Technology Choice and Welfare Analysis

Citation Type: Miscellaneous

Publication Year: 2013

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Abstract: This paper analyzes the long run welfare effects of immigration in a model endogenous technological change. Existing theoretical models predict that immigration with depress the wages. However, empirical literature finds that immigration effect on wages is either positive or insignificant. In order to match the theory with these empirical findings, I embed endogenous technological change in a model similar to Auerbauch and Kotlikoff (1987). The results show that the standard model underestimates the effect of immigration to native unskilled workers by 31%. Comparing the fiscal effects of immigration in terms of burden of an immigrant through net present discount value (NPV) calculations existing models overestimate NPV of an additional low skilled immigrant approximately by 35% and underestimate the value of an additional high skilled immigrant by 15%.

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Authors: Senel, Gonca

Publisher: University of California, Los Angeles

Data Collections: IPUMS USA

Topics: Migration and Immigration, Other, Poverty and Welfare

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