JOURNAL ARTICLE
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Welfare Implications of International Labor Migration
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 117 (1997), Iss. 4 : pp. 505–524
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Meier, Volker
Wenig, Alois
Abstract
In this paper both short-term and long-term effects of immigration on the income of the native population are analyzed. In the short run immigration usually changes the wage-interest ratio which increases the income of the natives. In the long run immigration may also have an impact on the rate of savings. If the natives are heterogeneous in their savings behavior, then immigration raises (lowers) their average income if the immigrants have a low (high) propensity to save. Natives with a high (low) rate of savings always benefit from a decline (rise) in the aggregate savings rate.