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Preface
5
Contents
7
Chapter 1 Introduction to Immigration Economics
17
1.1 The Late Twentieth Century Immigration Explosion
18
1.2 The Determinants of Immigration
22
1.3 A Brief History of Immigration
26
1.4 There are Many Types of Immigrants
30
1.5 The Purpose and Organization of this Book
32
References
34
Part I Immigration Theory and Evidence
36
Modeling Immigration
36
I.1 The Basic Labor Market Model of Immigration
37
I.2 Who Gains and who Loses with Immigration?
39
I.3 Building on the Basic Labor Market Model
41
Chapter 2 The Determinants of International Migration: Theory
42
Chapter Overview
42
2.1 The Theory of Internal Migration
44
2.2 The Economic Theory of Immigration
54
2.3 The Family or Household as the Decision-Making Unit
66
2.4 Summary and Conclusions
68
References
69
Chapter 3 Why People Immigrate: The Evidence
73
Chapter Overview
73
3.1 Regression Models of Immigration
74
3.2 The Choice of Variables in Statistical Models of Immigration
79
3.3 The Empirical Evidence on the Determinants of Migration
83
3.4 Summary and Concluding Remarks
88
References
90
Chapter 4 Who Immigrates? Theory and Evidence
92
Chapter Overview
92
4.1 Immigrant Selection: The Chiswick Vs. Borjas Debate
94
4.2 Extensions of the Borjas Model
101
4.3 The Empirical Evidence on Immigrant Selectivity
106
4.4 The Asymmetric Information Model
109
4.5 The Theory of Immigrant Assimilation
111
4.6 Addressing Borjas’ Critique
115
4.7 Conclusions
117
References
118
Chapter 5 The Effects of Immigration on the Destination Economy: The Theory
120
Chapter Overview
120
5.1 The Macro Effects of Immigration
121
5.2 Detailing the Distributional Effects of Immigration
129
5.3 Long-Run Adjustment Processes
133
5.4 The Demand Effect of Immigration
135
5.5 Concluding Remarks
142
References
143
Chapter 6 How Immigration Impacts the Destination Economy: The Evidence
146
Introduction
146
6.1 The Spatial Correlation Method
147
6.2 The Production Function Method
159
6.3 The Skill Cell Approach
163
6.4 Concluding Remarks
167
References
168
Chapter 7 Estimating Immigration’s Impact: Accounting for all Adjustments
171
Chapter Introduction
171
7.1 Does Immigration Trigger Internal Migration?
172
7.2 Migration Biases Estimates of Immigration’s Wage Effect
176
7.3 Does Immigration Change Industry Structure?
178
7.4 Measuring the Demand Effects of Immigration
179
7.6 The Costs of Government Services for Immigrants
185
7.7 Immigration’s External Effects
188
7.8 Concluding Remarks
191
References
192
Chapter 8 Immigration and the Source Country
195
8.1 Remittances and Demand Effects in the Source Country
196
8.2 What We Know About Immigrant Remittances
200
8.3 Negative Externalities from Agglomeration
207
8.4 Immigration and Technology Transfers, Investment, and Trade
210
8.5 The Brain Drain
213
8.6 A Reassessment of the Brain Drain
222
8.7 Conclusions
228
References
229
Chapter 9 Economic Growth and Immigration
232
9.1 The Early Models of Economic Growth
233
9.2 The Solow Growth Model
238
9.3 Immigration and Technological Progress
243
9.4 Immigration in the Schumpeterian Model
252
9.5 Protectionism, Creative Destruction, and Immigration
257
9.6 Growth Effects of Immigration in the Source Country
259
9.7 The Brain Drain Again
261
9.8 Summary and Conclusions
262
Appendix: An Alternative Mathematical Schumpeterian Model
263
A.1 Innovation and Profit
264
A.2 The Equilibrium Level of Entrepreneurial Activity
265
A.3 The Equilibrium Rate of Technological Progress
265
References
267
Part II Immigration Issues and Cases
270
Chapter 10 Temporary Immigration, Involuntary Immigration, and Other Variations on the Standard Model
272
Chapter Overview
272
10.1 Return Immigration
273
10.2 Temporary Immigration
276
10.3 Analyzing Temporary Migration
279
10.4 Asylum Seekers and Refugees
287
10.5 Involuntary Immigration
290
10.6 Summary and Conclusions
294
References
295
Chapter 11 Unauthorized Immigration
297
Introduction
297
11.1 Estimating Unauthorized Immigration
299
11.2 How Many Unauthorized Immigrants are There?
302
11.3 Some Characteristics of Unauthorized Immigrants
305
11.4 The Economic Analysis of Unauthorized Immigration
306
11.5 The Fiscal Costs and Benefits of Unauthorized Immigration
317
11.6 Unauthorized Immigration: Policy Options
319
11.7 Conclusions
321
References
322
Chapter 12 Hispanic Immigration to the United States
324
12.1 The Characteristics of Hispanic Immigration
326
12.2 Assimilation
329
12.3 Geographic Diffusion
338
12.4 Explaining Hispanic Immigration
343
12.5 Future Hispanic Immigration
345
12.6 Conclusions
348
References
349
Part III
351
III.1 The Goals of Immigration Policy
351
III.2 Classifying Immigration Policies
354
Chapter 13 Immigration Policy in the United States
356
Chapter Overview
356
13.1 Early Immigration Policy
359
13.2 The Latter Half of the Nineteenth Century
361
13.3 The Shift in Policy in the Early Twentieth Century
367
13.4 Post World War II Immigration Policy
371
13.5 Recent United States Immigration Policy
374
13.6 Post 9/11 Immigration Policy
378
13.7 Summary and Conclusions
382
References
384
Chapter 14 Immigration Policy in Canada
385
Chapter Overview
385
14.1 Overview of Immigration Policy in Canada
386
14.2 Canadian Immigration Policy in the Twentieth Century
391
14.3 Canada’s Immigration Policy Today
395
14.4 Some Final Observations
399
References
400
Chapter 15 Immigration Policy in Europe
401
Chapter Overview
401
15.1 European Migration During the Colonial Era
404
15.2 The Post-World War II Period
409
15.3 The Interesting Case of Ireland
413
15.4 Recent Immigration Policy in Spain
416
15.6 Can Immigration Solve the Demographic Burden?
417
15.7 Conclusions
419
References
419
Chapter 16 Conclusions and Final Observations
421
Chapter Overview
421
16.1 Immigration: A Fundamental Economic Phenomenon
422
16.2 We Must Think Outside our Little Boxes
424
16.3 An Appeal to Holism
426
16.4 Developing International Institutions
431
for an International Phenomenon
431
16.5 Final Comment
434
References
434
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