The current literature does not adequately analyze how economic crisis affects employment of immigrants in host countries. It is generally believed that immigrants lose jobs and return home during recession. We show that recession may instead help relatively unskilled immigrants when it leads to...

We study the interaction between foreign capital inflow and international migration of skilled labor when a small open economy is subject to exogenous shocks. The presence of a skill formation sector is central to our analysis, such that import liberalization and increased foreign capital inflow...