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Immigration, assimilation and growth.

J T Durkin

    Journal of Population Economics
    |September 26, 2002
    PubMed
    Summary
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    Immigration can improve majority welfare by boosting human capital and growth, even with increased ethnic diversity. This occurs when immigrants have lower time preference rates, enhancing overall economic outcomes.

    Area of Science:

    • Economics
    • Sociology
    • Demographics

    Background:

    • Immigration significantly impacts societal structures and economic welfare.
    • Ethnic diversity and human capital spillovers are key factors in economic models.
    • Understanding the interplay between immigration, diversity, and economic growth is crucial.

    Purpose of the Study:

    • To analyze the welfare effects of immigration on the majority ethnic group.
    • To model the impact of immigration-driven ethnic diversity on human capital spillovers.
    • To investigate the conditions under which immigration enhances majority welfare.

    Main Methods:

    • Development of an economic model incorporating human capital spillovers.
    • Analysis of how ethnic heterogeneity, time preference rates, and assimilation influence outcomes.
    Keywords:
    AcculturationCultural BackgroundDemographic FactorsEconomic DevelopmentEconomic FactorsEthnic GroupsHuman CapitalHuman ResourcesImmigrantsMigrantsMigrationModels, TheoreticalPopulationPopulation CharacteristicsPopulation DynamicsResearch MethodologySocial ChangeSocial WelfareWorld

    Related Experiment Videos

  • Simulation of endogenous immigration and its welfare consequences.

    • Main Results:

    • Increased ethnic diversity can reduce human capital spillovers for the majority.
    • Immigration can be welfare-improving for the majority, despite increased diversity.
    • Welfare gains are linked to increased average human capital and growth rates driven by immigrants with lower time preference.

    Conclusions:

    • Immigration's welfare effects are complex, depending on diversity and human capital dynamics.
    • Policies promoting assimilation and attracting individuals with specific traits (low time preference) can maximize benefits.
    • Economic models need to account for heterogeneity in time preference and its interaction with diversity.