Citation

Discussion Paper Details

Please find the details for DP12842 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Immigration and Spatial Equilibrium: the Role of Expenditures in the Country of Origin

Author(s): Christoph Albert and Joan Monras

Publication Date: April 2018

Keyword(s): Immigration, location choices and spatial equilibrium

Programme Area(s): International Trade and Regional Economics and Labour Economics

Abstract: We show that immigrants in the US concentrate in expensive cities, the earnings gap between natives and immigrants is larger in these cities, and these patterns are stronger when prices in the country of origin are lower. To rationalize this empirical evidence, we propose a quantitative spatial equilibrium model in which immigrants spend a fraction of their income in their countries of origin. Our model serves two purposes. First, to develop a new instrument for immigrant shocks that we use to test the model's predictions on native internal relocation responses. Second, to evaluate the consequences of immigration for aggregate productivity.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12842

Bibliographic Reference

Albert, C and Monras, J. 2018. 'Immigration and Spatial Equilibrium: the Role of Expenditures in the Country of Origin'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12842