Immigration,assimilation and growth |
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Authors: | Durkin J T |
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Institution: | (1) Department of Economics, Wayne State University, Detroit, MI 48202, USA (e-mail: sdurkin@econ.wayne.edu), US |
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Abstract: | This paper analyzes the welfare effects of immigration and its subsequent effect on ethnic diversity in a model featuring
human capital spillovers which depend on the degree of ethnic heterogeneity, variation rates of time preference across individuals
and endogenous levels of immigration and assimilation. In the model, an increase in ethnic diversity reduces the spillovers
effect for the majority. Nonetheless, immigration can be welfare improving for the majority ethnic group even if it increases
the degree of diversity as long as it raises the average human capital level and/or growth rate by increasing the proportion
of people with low rates of time preference. However, if an economy is too homogenous, it will not be able to attract immigrants.
Finally, if the level of immigration is not too high, then immigration also raises the net benefits to assimilation which
leads to a more homogenous economy.
Received: 18 February 1997 / Accepted: 16 July 1997 |
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Keywords: | JEL classification: F22 O3 J61 |
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