A capital mistake? The neglected effect of immigration on average wages
Much recent literature on the wage effects of immigration assumes that the return to capital, and therefore the average wage, is unaffected in the long run. If immigration is modelled as a continuous flow rather than a one-off shock, this result does not necessarily hold. A simple calibration with pre-crisis US immigration rates gives a reduction in average wages of 5%, larger than most estimates of the effect on relative wages.
Year of publication: |
2012
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Authors: | Trott, Declan |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 19.2012, 9, p. 873-876
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Publisher: |
Taylor & Francis Journals |
Saved in:
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