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Migration, Congestion and Growth

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  • Leonid V. Azarnert

Abstract

This article analyzes the effect of migration from a less advanced economy to a more advanced economy on economic growth. The analysis is performed in a two-country growth model with endogenous fertility, in which congestion diseconomies are incorporated. The model shows that out-migration increases fertility and reduces human capital in the source economy. At the same time, in-migration reduces fertility and can increase or decrease the average level of human capital in the host economy. I show how migration affects the inter-temporal evolution of human capital in the world economy. I also demonstrate that a tax imposed on immigrants in the host economy can increase human capital accumulation in the receiving and sending economies and the world as a whole.

Suggested Citation

  • Leonid V. Azarnert, 2017. "Migration, Congestion and Growth," CESifo Working Paper Series 6508, CESifo.
    • Handle: RePEc:ces:ceswps:_6508
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    Cited by:

    1. Leonid V Azarnert, 2023. "Population sorting and human capital accumulation," Oxford Economic Papers, Oxford University Press, vol. 75(3), pages 780-801.
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    3. Luigi Bonatti, 2020. "Is Immigration Necessary for Italy? Is it Desirable?," EconPol Policy Reports 17, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Ke Liu & Shiwen Yang & Qian Zhou & Yurong Qiao, 2021. "Spatiotemporal Evolution and Spatial Network Analysis of the Urban Ecological Carrying Capacity in the Yellow River Basin," IJERPH, MDPI, vol. 19(1), pages 1-25, December.

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    More about this item

    Keywords

    migration; congestion diseconomies; fertility; human capital; growth; brain drain; brain dilution tax;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General

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