Immigration Policy, Equilibrium Unemployment, and Underinvestment in Human Capital

34 Pages Posted: 27 Apr 2009

See all articles by Christian Lumpe

Christian Lumpe

affiliation not provided to SSRN

Benjamin Weigert

University of Giessen - Department of Economics

Abstract

We analyse the impact of different immigration policies on human capital investment in a search-theoretic model. This class of models features unemployment and underinvestment in human capital. The underinvestment in human capital can be solved by combining immigration policy with appropriate education subsidies. Extending the model with respect to different skill groups allows to analyse the observed bimodal skilled immigration of the USA.

Suggested Citation

Lumpe, Christian and Weigert, Benjamin, Immigration Policy, Equilibrium Unemployment, and Underinvestment in Human Capital. LABOUR, Vol. 23, Issue 1, pp. 97-130, March 2009, Available at SSRN: https://ssrn.com/abstract=1378377 or http://dx.doi.org/10.1111/j.1467-9914.2008.00435.x

Christian Lumpe (Contact Author)

affiliation not provided to SSRN

No Address Available

Benjamin Weigert

University of Giessen - Department of Economics ( email )

Licher Str. 62
Giessen, Hessen D-35394
Germany

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