JOURNAL ARTICLE
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Growth (Rate) Effects of Migration
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 116 (1996), Iss. 2 : pp. 199–221
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Walz, Uwe
Abstract
Problems related to labor migration are high on the agenda. This paper presents an endogenous growth model for two countries which enables us to analyze the growth (rate) effects of migration in the host as well as in the source country. Skill formation of heterogeneous individuals is endogenous. Migration policy turns out to be a screening device which selects high-ability migrants. We show that migration can lead to a higher world-wide growth rate. Furthermore, we carry out an analysis of the welfare effects of migration.