The dynamics of immigration policy with wealth-heterogeneous immigrants
Abstract: In this paper we consider a simple intertemporal economy in which immigrants, if admitted, bring heterogeneous amounts of capital. We show that under certain conditions there is a level of immigration which maximizes the economy's capital-labor ratio, and that this level of immigration is the preferred choice of a majority of the economy's citizens. We then characterize, in an overlapping generations setting, the dynamics of capital accumulation and immigration policy, which can include multiple steady state equilibria and a sensitivity of immigration levels to changes in the economy's technology growth rate.
Keywords: Emigration and immigration;
File(s): File format is application/pdf http://www.dallasfed.org/assets/documents/research/papers/2000/wp0006.pdf
Provider: Federal Reserve Bank of Dallas
Part of Series: Working Papers
Publication Date: 2000