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IMMIGRATION AND UNEMPLOYMENT: A MACROECONOMIC APPROACH

Published online by Cambridge University Press:  02 October 2017

Takehiro Kiguchi  and
Andrew Mountford
Takehiro Kiguchi
Affiliation:
Waseda University
Andrew Mountford*
Affiliation:
Royal Holloway, University of London
*
Address correspondence to: Andrew Mountford, Department of Economics, Royal Holloway, University of London, Egham, Surrey TW20 OEX, UK; e-mail: A.Mountford@rhul.ac.uk.
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Abstract

This paper analyzes the effects of an unanticipated increase in immigration in a macroeconomic model with search and matching frictions. It shows how an immigration shock can lead to a temporary increase in unemployment under a variety of conditions and that this is qualitatively consistent with the responses from a VAR estimated on postwar US data.

Keywords

MacroeconomicsImmigrationUnemployment

Information

Type
Articles
Information
Macroeconomic Dynamics , Volume 23 , Issue 4 , June 2019 , pp. 1313 - 1339
Copyright
Copyright © Cambridge University Press 2017 

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Footnotes

We thank the participants of the seminar at the Department of Economics Management and Statistics Università degli Studi di Milano-Bicocca, Italy and Royal Holloway University for their useful comments. T. Kiguchi gratefully acknowledges the financial support by Waseda University Grant for Special Research Projects (2015S-188). All errors are our own.

References

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