Abstract
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 language | English |
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Pages (from-to) | 1313-1339 |
Number of pages | 27 |
Journal | Macroeconomic Dynamics |
Volume | 23 |
Issue number | 4 |
Early online date | 2 Oct 2017 |
DOIs | |
Publication status | Published - Jun 2019 |