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Modeling the Immigration Shock

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  • Michele Boldrin
  • Ana Montes

Abstract

We are interested in the following question: what are the intergenerational effects of a large and unexpected immigration flow? How does it affect the welfare of the different generations living in the country that receives the immigration flow and, in particular, how does it impact on intergenerational arrangements such as public education and pensions? To begin answering these questions we develop a simple theoretical framework with overlapping generations that live for three periods, accumulate human capital in the first, work in the second and retire in the third living off the return from their investments. The latter include both physical capital and the interest from the money they lent to the young people to invest in human capital.

Suggested Citation

  • Michele Boldrin & Ana Montes, 2008. "Modeling the Immigration Shock," Working Papers 2008-39, FEDEA.
    • Handle: RePEc:fda:fdaddt:2008-39
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    References listed on IDEAS

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    Cited by:

    1. Agustín Arias & Juan Guerra-Salas, 2019. "Immigration in Emerging Countries: A Macroeconomic Perspective," Working Papers Central Bank of Chile 857, Central Bank of Chile.
    2. Bohn, Henning & Lopez-Velasco, Armando R., 2019. "Immigration And Demographics: Can High Immigrant Fertility Explain Voter Support For Immigration?," Macroeconomic Dynamics, Cambridge University Press, vol. 23(5), pages 1815-1837, July.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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