We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of...

This paper examines empirically the interaction between immigration and host country economic conditions. We employ panel VAR techniques to use a large annual dataset on 22 OECD countries over the period 1987-2009. The VAR approach allows to addresses the endogeneity problem by allowing the...

Immigration may impact income distribution both by affecting the skill composition of a country's residents, and, by changing relative factor supplies, its relative factor prices. We provide some background evidence on compositional factors but focus primarily on factor prices. We first consider...

This paper offers a reappraisal of the impact of migration on economic growth for 22 OECD countries between 1986-2006 and relies on a unique data set we compiled that allows us to distinguish net migration of the native- and foreign-born populations by skill level. Specifically, after...

This paper examines the causality relationship between immigration, unemployment and economic growth of the host country. We employ the panel Granger causality testing approach of Konya (2006) that is based on SUR systems and Wald tests with country specific bootstrap critical values. This...

We develop a general model of legal and illegal immigration to understand the basic tradeoffs faced by a government in the decision to implement an immigration amnesty in the presence of a selective immigration policy. We show that two channels play an important role: an amnesty is more likely...

Migration flows are shaped by a complex combination of self-selection and out-selection mechanisms. In this paper, we analyze how existing diasporas (the stock of people born in a country and living in an another one) affect the size and human-capital structure of current migration flows. Our...

We investigate whether the stock of foreigners residing in a country leads to a larger number of terrorist attacks on that country. Our instrument for the stock of foreigners relies on the interaction of two sets of variables. Variation across host-origin-dyads results from structural...

Cross-country regressions suggest that urbanization and FDI are important drivers of growth. However, it is not clear that primacy eventually hurts growth performance. Since it is tough to interpret cross-country growth regressions, we provide detailed evidence on the determinants of outward FDI...

The interplay between banks and the macroeconomy is of key importance for financial and economic stability. We analyze this link using a factor-augmented vector autoregressive model (FAVAR) which extends a standard VAR for the U.S. macroeconomy. The model includes GDP growth, inflation, the...