The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from
- Authors
- Das, Gouranga Gopal; Marjit, Sugata; Kar, Mausumi
- Issue Date
- May-2020
- Publisher
- Elsevier BV
- Keywords
- Immigration; Innovation; Wage gap; General equilibrium; VAR model
- Citation
- Journal of Policy Modeling, v.42, no.3, pp 557 - 582
- Pages
- 26
- Indexed
- SSCI
SCOPUS
- Journal Title
- Journal of Policy Modeling
- Volume
- 42
- Number
- 3
- Start Page
- 557
- End Page
- 582
- URI
- https://scholarworks.bwise.kr/erica/handle/2021.sw.erica/1133
- DOI
- 10.1016/j.jpolmod.2020.02.003
- ISSN
- 0161-8938
1873-8060
- Abstract
- With the ensuing immigration reform in the US, the paper shows that targeted skilled immigration into the R&D sector that helps low-skilled labor is conducive for controlling inequality and raising wage. Skilled talent-led innovation could have spillover benefits for the unskilled sector while immigration into the production sector will always reduce wage, aggravating wage inequality. In essence, we infer: (i) if R&D inputs contributes only to skilled sector, wage inequality increases in general; (ii) for wage gap to decrease, R&D sector must produce inputs that goes into unskilled manufacturing sector; (iii) even with two types of specific R&D inputs entering into the skilled and unskilled sectors separately, unskilled labor is not always benefited by high skilled migrants into R&D-sector. Rather, it depends on the importance of migrants' skill in R&D activities and intensity of inputs. Empirical verification using a VAR model in the context of the USA confirms the conjectures, and the empirical results substantiate our policy-guided hypothesis that skilled immigration facilitates innovation with favorable impact on reducing wage-gap. Inclusive immigration policy requires inter-sectoral diffusion of ideas embedded in talented immigrants targeted for innovation. (C) 2020 The Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.
- Files in This Item
-
Go to Link
- Appears in
Collections - COLLEGE OF BUSINESS AND ECONOMICS > DEPARTMENT OF ECONOMICS > 1. Journal Articles
![qrcode](https://api.qrserver.com/v1/create-qr-code/?size=55x55&data=https://scholarworks.bwise.kr/erica/handle/2021.sw.erica/1133)
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.