Title

Immigration Conflicts

Abstract

Almost all existing literature assumes immigrants immediately assimilate in the receiving country. In contrast, the present paper considers the case of non-immidiate assimilation, and analyzes various immigration con‡icts in an over-lapping generations dynamic system. We examine three types of con‡icts that arise when immigrants come in: skill con‡icts that a¤ect the capital rental and also cause the wage gap to change between skilled and unskilled workers; in-tergenerational con‡icts that lead to di¤erent impacts on the young and old generations; and distributional con‡icts that a¤ect each generation’s life-time utility unequally. The degree of substitution between natives and immigrants in production plays a key role. We also analyze the welfare composition in detail generation by generation, and provide policy recommendation for each case.

Keywords

Immigration, Overlapping generations, Inequality

JEL Classification

F22

Inquiries

Junko DOI
Faculty of Economics, Kansai University

Laixun ZHAO
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059