Ricerc@Sapienza

This research aims to analyze the long-run effects of migration on the advanced countries. I plan to build a two-country dynamic general equilibrium model with search frictions and endogenous labor migration. In the model, domestic and foreign workers compete for jobs in the same labor market, but serve as imperfect substitutes in production. Following, I plan to perform a dynamic analysis of the model in order to explore the economic impacts of migration on the host country economic growth and labor market conditions. Further, I will extend the model in order to perform the counterfactual experiment of imposing a lump-sum tax on firms who hire migrant workers. The goal of this extension is to assess whether migrant taxation is able to decrease the labor market competition between natives and migrants, and thus possibly increase the natives welfare. Finally, this research will also include a version of the model with endogenous growth. More precisely, I will employ a two-country AK-model with search frictions and international migration, and then compare the results with the baseline model and the empirical evidence.