Immigration and Unemployment: A Macroeconomic Approach

Takehiro Kiguchi, Andrew Mountford

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This paper analyzes the effects of an unanticipated increase in immigration in a macroeconomic model with search and matching frictions. It shows how an immigration shock can lead to a temporary increase in unemployment under a variety of conditions and that this is qualitatively consistent with the responses from a VAR estimated on post-war US data.
Original languageEnglish
Pages (from-to)1313-1339
Number of pages27
JournalMacroeconomic Dynamics
Issue number4
Early online date2 Oct 2017
Publication statusPublished - Jun 2019

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