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 conicts in an over-lapping generations dynamic system. We examine three types of conicts that arise when immigrants come in: skill conicts that a¤ect the capital rental and also cause the wage gap to change between skilled and unskilled workers; in-tergenerational conicts that lead to di¤erent impacts on the young and old generations; and distributional conicts that a¤ect each generations 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
Faculty of Economics, Kansai University
Research Institute for Economics and Business Administration
Rokkodai-cho, Nada-ku, Kobe