Immigration, Excess Aggregate Demand and the Balance of Payments

Mishan, E. J.; Needleman, Lionel

doi:10.2307/2552608

Cited by 21 publications

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“…56,57 This is consistent with the possibility that foreign workers are attracted to those regions where the unemployment rate is lowest and opportunities are greatest, for which there appears to be some evidence. There is tentative evidence, however, in contrast to some other studies, 55 Mishan and Needleman (1966) demonstrate that under certain conditions, the opposite could be found (the demand effects could outweigh the supply effects). 56 Note that the negative correlation shown in Figure 1 is not statistically significant.…”

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confidence: 58%

“…consequences of immigration on aggregate demand and the balance of payments includes Mishan and Needleman (1966). An early discussion of the long-run consequences of immigration, including external diseconomies, are contained in Mishan and Needleman (1968a, b).…”

Section: ] F175mentioning

confidence: 99%

“…55 55 Mishan and Needleman (1966) demonstrate that under certain conditions, the opposite could be found (the demand effects could outweigh the supply effects). …”

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Fear, Unemployment and Migration

Blanchflower

Shadforth

2009

The Economic Journal

114

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We examine the impact on the UK economy of the flow of workers from ten East European countries after their accession to the European Union. We find evidence that those most susceptible to competition from these workers have seen weaker wage inflation. We document that the presence of these foreign workers has increased the fear of unemployment and helped to contain wage pressure. We argue that this inflow of workers has increased supply by more than it has raised demand and, thus, had the effect of reducing both inflationary pressures and the natural rate of unemployment. Copyright � The Author(s). Journal compilation � Royal Economic Society 2009.

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confidence: 58%

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Fear, Unemployment and Migration

Blanchflower

Shadforth

2009

The Economic Journal

114

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“…They were first discussed in a macroeconomic context by Mishan andNeedleman (1966, 1968), then suggested by Harrison (1983) as a possible reason for the benign effects of immigration on native-born workers in Australia. Greenwood and Hunt (1984) suggested that immigration can cause the nation"s labor demand curve to shift out, one reason being that immigrants could boost the price and profitability of locally produced goods.…”

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Measuring immigration's effects on labor demand: A reexamination of the Mariel Boatlift

2008

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents inIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. It is now well known that exogenous immigration shocks tend to have benign effects on native employment outcomes, thanks to various secondary adjustment processes made possible by flexible markets. One adjustment process that has received scant attention is that immigrants, as consumers of the goods they help produce, contribute to their own demand. We examine the effects of an immigration shock on labor demand by testing a general equilibrium model in which imperfectly substitutable native and immigrant workers spend their wages on a locally produced good. The shock induces three responses: (i) a substitution of immigrants for natives; (ii) out-migration; and (iii) stimulation of labor demand. According to (iii), native wages can fall, stay the same or rise, depending upon the strength of the shock and various product and factor market elasticities. As our test case, we reexamine the 1980 "Mariel Boatlift," using Wacziarg's "Channel Transmission" methodology. Our data set includes approximately 6,600 observations for 1979-85 from the Current Population Survey on workers in 9 different retail labor markets and Survey of Buying Power data on retail spending by consumers in Miami and four comparison cities. Our results provide a more complete explanation for why the Boatlift's overall effects on native wages in Miami were benign: Lower wages due to greater labor supply were offset by higher wages due to greater labor demand. We conclude that the demand-augmenting effect of an immigration shock is a significant secondary adjustment process that must be conside...

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“…See, for example, Kenen (1971), Bhagwati and Rodriguez (1976), Mishan andNeedleman (1966, 1968). See, for example, Kenen (1971), Bhagwati and Rodriguez (1976), Mishan andNeedleman (1966, 1968).…”

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The Effects of Immigration in a Distorted Two-Sector Economy

Rivera-Batíz

1981

Economic Inquiry

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This paper examines the income, employment and distributional impact of immigration on a recipient economy facing an administered wage distortion. It is found that immigration increases the unemployment rate of the native population and shifts income distribution against labor and in favor of the nonlabor input. Its effect on the total income of the non-immigrants is, howeveq ambiguous, and depends on the relative importance of the increase in unemployment versus the net increase in the rent received by the owners of the non-labor input.626 Economic Inquiry Vol. XIX, October 1981 -(4)where we utilize the price of the modern sector good, PI, as numeraire, and where C, is the domestic consumption of commodity 2.The modern sector is especially characterized by an administered wage. This wage is assumed to be set by a trade union whose goal is to 3. One of our main interests is how immigration affects the mobility of domestic labor within the ewnornifmong sectors). In order to concentrate our attention on labor mobility, we are assuming that mo ' ity in the non-labor input does not occur. This is correct only if that input is sector-specific, andlor if the concern is only with the short-run. ECONOMIC INQUIRY

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Immigration, Excess Aggregate Demand and the Balance of Payments

Cited by 21 publications

References 0 publications

Fear, Unemployment and Migration

Fear, Unemployment and Migration

Measuring immigration's effects on labor demand: A reexamination of the Mariel Boatlift

The Effects of Immigration in a Distorted Two-Sector Economy

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