Immigration,investment, and real wages |
| |
Authors: | Elise S. Brezis Paul R. Krugman |
| |
Affiliation: | (1) Department of Economics, Bar-Ilan University, 52900 Ramat Gan, Israel (E-mail: F43504@MVSA.BIU.AC.IL), IL;(2) Department of Economics, Stanford University, Stanford, CA 94305, USA, US |
| |
Abstract: | When a country is the recipient of large-scale, politically motivated immigration – as has been the case for Israel in recent years – the initial impact is to reduce real wages. Over the longer term, however, the endogenous response of investment, together with increasing returns, may well actually increase real earnings. If immigration itself is not wholly exogenous, but respond to real wages, they may be multiple equilibria, that is, optimism or pessimism about the success of the economy at absorbing immigrants may constitute a self-fulfilling prophecy. Received August 22, 1994 / Accepted August 23, 1995 |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|