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Returns to Scale and the Economic Impact of Migration

Author

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  • Robert Rowthorn

Abstract

Abstract This paper is concerned with the impact of international migration on a regional economy. It is based on the assumption that immigration causes the population of the region to grow, thereby increasing the cost of living for existing residents. In one version of the model, the government responds by increasing wages in the public sector so as to help offset the higher cost of living. The private sector follows suit. In another version of the model, wages are determined by supply and demand. The paper investigates what happens to living standards, unemployment and the location of the native population under different assumptions about returns to scale.

Suggested Citation

  • Robert Rowthorn, 2008. "Returns to Scale and the Economic Impact of Migration," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(2), pages 151-158.
    • Handle: RePEc:taf:specan:v:3:y:2008:i:2:p:151-158
    DOI: 10.1080/17421770801996300
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    Citations

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    Cited by:

    1. B. Fingleton & P. Cheshire & H. Garretsen & D. Igliori & J. Le Gallo & P. McCann & J. McCombie & V. Monastiriotis & B. Moore & M. Roberts, 2009. "Editorial," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(3), pages 243-248.
    2. R. E. Rowthorn, 2009. "Returns to Scale and the Economic Impact of Migration: Some New Considerations," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(3), pages 329-341.

    More about this item

    Keywords

    Migration; regions; returns to scale; agglomeration economies; R11; R12; R15;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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