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The Economic Impact of Migration: A Survey

Author: STEPHEN DRINKWATER, PAUL LEVINE, EMANUELA LOTTI, and JOSEPH PEARLMAN
Published in IJED, Vol. 5 No. 2

This survey reviews both theoretical and empirical papers that examine the economic effects of labour mobility. We address three broad sets of issues: firstly, the effect that immigration has on the host country's labour market. Although the possible adverse effects that immigration can have on the wage and employment levels of natives are typically examined, immigration may also have a role to play in raising skill levels. This leads to the second broad issue: the effect of migration of a particular skill composition on the long-term (endogenous) growth of the host country. Finally, immigration can have a major economic impact on the source country. These effects can either be positive or negative depending on the interplay between the effects of growth, remittances and the brain drain.

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