A capital mistake? The neglected effect of immigration on average wages

Declan Trott

doi:10.1080/13504851.2011.607116

A capital mistake? The neglected effect of immigration on average wages

Declan Trott^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

Much recent literature on the wage effects of immigration assumes that the return to capital, and therefore the average wage, is unaffected in the long run. If immigration is modelled as a continuous flow rather than a one-off shock, this result does not necessarily hold. A simple calibration with precrisis US immigration rates gives a reduction in average wages of 5%, larger than most estimates of the effect on relative wages.

Original language	English
Pages (from-to)	873-876
Number of pages	4
Journal	Applied Economics Letters
Volume	19
Issue number	9
DOIs	https://doi.org/10.1080/13504851.2011.607116
Publication status	Published - Jun 2012

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10.1080/13504851.2011.607116

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A capital mistake? The neglected effect of immigration on average wages

Abstract

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