A Model of Wage Effects of Immigration
نویسنده
چکیده
Labor immigration changes the quantitative relation between labor and other factors of production, notably capital. The effect of immigration on native wages depends on how fast and how far the size of the capital stock responds to immigration. A benchmark analysis where the capital stock does not respond at all is presented in Borjas (95, 2003). With an estimate of 10% of the US population being immigrants, wages in Borjas’ model with inelastic capital are about 3% lower than they would have been without immigrants. In this static framework it is the stock of immigrants that matter, whether they all came at once or slowly over a longer period of time, and the effect remains over time.
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