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Is tightening immigration policy good for workers in the receiving economy?

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  • Akira Yakita

    (Nanzan University)

Abstract

Long-term effects of tightening immigration policies on native workers of a host country are analyzed using a small open overlapping-generation model. Such a policy is intended to protect native workers from losing income and possibly jobs. Results demonstrate that a stricter policy raises the unskilled wage rate as expected, but it might also raise the skilled-wage rate even if skilled and unskilled labors are (technically) complementary. Such a policy also lowers the average education level of the country. If skilled and unskilled labors are sufficiently substitutable, then the policy might instead increase immigration inflows to the host country.

Suggested Citation

  • Akira Yakita, 2021. "Is tightening immigration policy good for workers in the receiving economy?," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 975-991, October.
    • Handle: RePEc:spr:apjors:v:5:y:2021:i:3:d:10.1007_s41685-021-00192-w
    DOI: 10.1007/s41685-021-00192-w
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    More about this item

    Keywords

    Education; Immigration policy; Skilled–unskilled labor complementarity;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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