Full Citation
Title: The Effects of Temporary Immigration on Prices of Non Traded Goods and Services
Citation Type: Miscellaneous
Publication Year: 2008
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Abstract: This paper analyzes the impact of temporary immigration on the prices of non-tradable goods and services. It presents a model of a small open economy that produces two goods (or services), one tradable and one non tradable. In accordance with a common characteristic of temporary work permit schemes we assume that temporary immigrants are conned to work in the non-traded sector. We further assume that they are only imperfect substitutes for permanent immigrants and native low skilled workers and that they send large parts of their revenues to their home country. It is shown that in this setup temporary immigrants have a negative eect on the prices of non-traded goods and services, while the eect of permanent immigrants is ambiguous. We test these predictions empirically using a panel dataset of 14 U.S. cities for the period 2000 − 2006. Our results suggest that low skilled temporary immigrants have a larger and negative impact on the relative price of non-traded goods than permanent immigrants.
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Authors: Baghdadi, Leila; Jansen, Marion
Publisher: University of Paris
Data Collections: IPUMS USA
Topics: Migration and Immigration, Other
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