The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from
- Title
- The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from
- Author
- Gouranga G. Das
- Keywords
- Immigration; Innovation; Wage gap; General equilibrium; VAR model
- Issue Date
- 2020-03
- Publisher
- ELSEVIER SCIENCE INC
- Citation
- JOURNAL OF POLICY MODELING, v. 42, no. 3, page. 557-582
- 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.
- URI
- https://www.sciencedirect.com/science/article/pii/S0161893820300181https://repository.hanyang.ac.kr/handle/20.500.11754/163057
- ISSN
- 0161-8938
- DOI
- 10.1016/j.jpolmod.2020.02.003
- Appears in Collections:
- COLLEGE OF BUSINESS AND ECONOMICS[E](경상대학) > ECONOMICS(경제학부) > Articles
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