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Immigration, Human Capital Formation and Endogenous Economic Growth

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  • Isaac Ehrlich
  • Jinyoung Kim

Abstract

Census data from international sources covering 77% of the world’s migrant population indicate that the skill composition of migrants in major destination countries, including the US, has been rising over the last 4 decades. Moreover, the population share of skilled migrants has been approaching or exceeding that of skilled natives. We offer theoretical propositions and empirical tests consistent with these trends via a general-equilibrium model of endogenous growth where human capital, population, income growth and distribution, and migration trends are endogenous. We derive new insights about the impact of migration on long-term income growth and distribution, and the net benefits to natives in both destination and source countries.

Suggested Citation

  • Isaac Ehrlich & Jinyoung Kim, 2015. "Immigration, Human Capital Formation and Endogenous Economic Growth," NBER Working Papers 21699, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21699
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    Cited by:

    1. Daron Acemoglu & Pascual Restrepo, 2018. "Low-Skill and High-Skill Automation," Journal of Human Capital, University of Chicago Press, vol. 12(2), pages 204-232.
    2. Robert E. Lucas Jr., 2018. "What Was the Industrial Revolution?," Journal of Human Capital, University of Chicago Press, vol. 12(2), pages 182-203.
    3. Joan Llull, 2021. "Immigration and Gender Differences in the Labor Market," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 174-203.
    4. Michael A Clemens, 2022. "The economic and fiscal effects on the United States from reduced numbers of refugees and asylum seekers," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 449-486.
    5. Brandyn F. Churchill & Joseph J. Sabia, 2019. "The Effects of Minimum Wages on Low‐Skilled Immigrants’ Wages, Employment, and Poverty," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(2), pages 275-314, April.
    6. Isaac Ehrlich & Yun Pei, 2020. "Human Capital as Engine of Growth: The Role of Knowledge Transfers in Promoting Balanced Growth within and across Countries," Asian Development Review, MIT Press, vol. 37(2), pages 225-263, September.
    7. Klaus Nowotny, 2016. "Are Overqualified Migrants Self-Selected? Evidence from Central and Eastern European Countries," Journal of Human Capital, University of Chicago Press, vol. 10(3), pages 303-346.
    8. Aris Ananta & Evi Nurvidya Arifin & Ari Purbowati & Paul J. Carnegie, 2023. "Does diversity matter for development? New evidence of ethnic diversity’s mediation between internal migration and economic growth across Indonesia’s regions," Journal of Population Research, Springer, vol. 40(3), pages 1-21, September.
    9. Mehra, Mishita & Shen, Hewei, 2022. "Skilled immigration, firms, and policy," Journal of International Economics, Elsevier, vol. 139(C).
    10. David Lagakos & Benjamin Moll & Tommaso Porzio & Nancy Qian & Todd Schoellman, 2018. "Life-Cycle Human Capital Accumulation across Countries: Lessons from US Immigrants," Journal of Human Capital, University of Chicago Press, vol. 12(2), pages 305-342.
    11. Michael Ben‐Gad, 2022. "Russia versus the West: Facing the long‐term challenge," Economic Affairs, Wiley Blackwell, vol. 42(2), pages 385-394, June.
    12. Julio Acuna, 2023. "The Asymmetric Impact of Out-Migration and Return Migration on Wages in the Source Country: Evidence from Mexico," Journal of Human Capital, University of Chicago Press, vol. 17(2), pages 173-206.
    13. Z. Eylem Gevrek & Pinar Kunt & Heinrich W. Ursprung, 2021. "Education, political discontent, and emigration intentions: evidence from a natural experiment in Turkey," Public Choice, Springer, vol. 186(3), pages 563-585, March.
    14. Paweł Strzelecki & Jakub Growiec & Robert Wyszyński, 2022. "The contribution of immigration from Ukraine to economic growth in Poland," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(2), pages 365-399, May.
    15. Huang, Xinhui & Tarkom, Augustine, 2023. "Labor substitutability and corporate labor investment: Evidence from the H-1B program," Finance Research Letters, Elsevier, vol. 53(C).
    16. Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2019. "On Human Capital and Team Stability," Journal of Human Capital, University of Chicago Press, vol. 13(2), pages 236-259.
    17. Pierre-Andr'e Chiappori & Alfred Galichon & Bernard Salani'e, 2021. "On Human Capital and Team Stability," Papers 2102.06487, arXiv.org.
    18. Lim, Sokchea & Morshed, A.K.M. Mahbub & Turnovsky, Stephen J., 2023. "Endogenous labor migration and remittances: Macroeconomic and welfare consequences," Journal of Development Economics, Elsevier, vol. 163(C).
    19. Rosa Ferrentino & Luca Vota, 2022. "The Low-Skilled Immigrants’ Integration Process: a Mathematical Analysis," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 12(6), pages 1-8.
    20. Mehra, Mishita & Kim, Daisoon, 2023. "Skilled immigration, offshoring, and trade," Journal of Economic Dynamics and Control, Elsevier, vol. 146(C).
    21. Zhao, Yu & Du, Hui & Li, Rui & Zhou, Guangsu, 2024. "The long-term influence of education resources allocation on the migration: Evidence from the China’s rural school consolidation policy," Journal of Asian Economics, Elsevier, vol. 91(C).

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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