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Immigration, assimilation and growth

Author

Listed:
  • John T. Durkin Jr.

    (Department of Economics, Wayne State University, Detroit, MI 48202, USA)

Abstract

This paper analyzes the welfare effects of immigration and its subsequent effect on ethnic diversity in a model featuring human capital spillovers which depend on the degree of ethnic heterogeneity, variation rates of time preference across individuals and endogenous levels of immigration and assimilation. In the model, an increase in ethnic diversity reduces the spillovers effect for the majority. Nonetheless, immigration can be welfare improving for the majority ethnic group even if it increases the degree of diversity as long as it raises the average human capital level and/or growth rate by increasing the proportion of people with low rates of time preference. However, if an economy is too homogenous, it will not be able to attract immigrants. Finally, if the level of immigration is not too high, then immigration also raises the net benefits to assimilation which leads to a more homogenous economy.

Suggested Citation

  • John T. Durkin Jr., 1998. "Immigration, assimilation and growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(2), pages 273-291.
    • Handle: RePEc:spr:jopoec:v:11:y:1998:i:2:p:273-291
    Note: Received: 18 February 1997 / Accepted: 16 July 1997
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    Citations

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    Cited by:

    1. Schiff, Maurice, 1999. "Labor market integration in the presence of social capital," Policy Research Working Paper Series 2222, The World Bank.
    2. Emmanuel Thibault, 2001. "Labor immigration and long-run welfare in a growth model with heterogenous agents and endogenous labor supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 391-407.
    3. Emmanuel Thibault, 2017. "Is GDP a Relevant Social Welfare Indicator? A Savers—Spenders Theory Approach," The Japanese Economic Review, Springer, vol. 68(3), pages 333-351, September.
    4. Galea, Sandro & Freudenberg, Nicholas & Vlahov, David, 2005. "Cities and population health," Social Science & Medicine, Elsevier, vol. 60(5), pages 1017-1033, March.
    5. Maurice Schiff, 2004. "Labor Mobility, Trade, and Social Capital," Review of International Economics, Wiley Blackwell, vol. 12(4), pages 630-642, September.
    6. Schild, Christopher-Johannes & Wrede, Matthias, 2015. "Cultural identity, mobility and decentralization," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 323-333.

    More about this item

    Keywords

    Immigration · assimilation · growth · diversity;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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