Immigration Conflicts


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.


Immigration, Overlapping generations, Inequality

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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