1. THE IMMIGRATION SURPLUS REVISITED IN A GENERAL EQUILIBRIUM MODEL WITH ENDOGENOUS GROWTH
- Author
-
Drinkwater, Stephen, Levine, Paul, Lotti, Emanuela, and Pearlman, Joseph
- Subjects
Emigration and immigration -- Growth ,Emigration and immigration -- Analysis ,Company growth ,Geography ,Social sciences - Abstract
To purchase or authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-9787.2007.00521.x Byline: Stephen Drinkwater (1), Paul Levine (2), Emanuela Lotti (3), Joseph Pearlman (4) Abstract: ABSTRACT. We revisit the influential work of Borjas (1995) on the economic gain to the host population from immigration-'the immigration surplus.' We develop his analysis by using a general equilibrium endogenous growth model with endogenous capital and several sectors, including an R&D sector driving growth. Skilled immigration leads to a bigger R&D sector share resulting in higher long-term growth. If skilled labor and physical capital are complements, this growth gain increases. Growth effects on the immigration surplus dominate the purely static effects of Borjas, but are not sufficient to eliminate the emergence of losers (skilled natives) within the host population. Author Affiliation: (1)Department of Economics, University of Surrey, Guildford, Surrey, UK, GU2 7XH. E-mail:s.drinkwater@surrey.ac.uk (2)Department of Economics, University of Surrey, Guildford, Surrey, UK, GU2 7XH. E-mail:p.levine@surrey.ac.uk (3)Department of Economics, University of Surrey, Guildford, Surrey, UK, GU2 7XH. E-mail:e.lotti@surrey.ac.uk (4)Department of Economics, London Metropolitan University, UK, EC3N 2EY. E-mail:j.pearlman@londonmet.ac.uk Article History: Received: August 2005; revised: July 2006; accepted: October 2006.
- Published
- 2007