MIGRATION, CONGESTION, and GROWTH

Leonid V. Azarnert

Research output: Contribution to journalArticlepeer-review

13 Scopus citations

Abstract

This article analyzes the effect of migration from a less advanced economy to a more advanced economy on economic growth. The analysis is performed in a two-country growth model with endogenous fertility, in which congestion diseconomies are incorporated. The model shows that out-migration increases fertility and reduces human capital in the source economy. At the same time, in-migration reduces fertility and can increase or decrease the average level of human capital in the host economy. I show how migration affects the inter-temporal evolution of human capital in the world economy. I also demonstrate that a tax imposed on immigrants in the host economy can increase human capital accumulation in the receiving and sending economies and the world as a whole.

Original languageEnglish
Pages (from-to)3035-3064
Number of pages30
JournalMacroeconomic Dynamics
Volume23
Issue number8
DOIs
StatePublished - 1 Dec 2019
Externally publishedYes

Keywords

  • Brain Dilution Tax
  • Brain Drain
  • Congestion Diseconomies
  • Fertility
  • Growth
  • Human Capital
  • Migration

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