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Immigration and Secular Stagnation

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  • Kaz Miyagiwa
  • Yoshiyasu Ono

Abstract

We examine the effect of immigration on the host-country economy in the dynamic model that can deal with secular unemployment. Immigration has contrasting effects, depending on the economic state of the host country. If it suffers from unemployment, an influx of immigrants worsens unemployment and decreases consumption by natives. If instead the host country has full employment, immigration boosts native consumption while maintaining full employment, provided that immigrants are not too numerous. An influx of too many immigrants however can trigger stagnation. We also find that immigrants’ remittances are harmful to natives under full employment but beneficial under secular stagnation.

Suggested Citation

  • Kaz Miyagiwa & Yoshiyasu Ono, 2019. "Immigration and Secular Stagnation," ISER Discussion Paper 1054r, Institute of Social and Economic Research, Osaka University, revised Jun 2019.
    • Handle: RePEc:dpr:wpaper:1054r
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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