Illegal Migrants in an Overlapping-Generations Model(In Commemoration of the 10th Anniversary)

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Abstract

By extending the framework of Galor (1986), this paper shows that making the penalty of illegal migrants higher or enhancing the disclosure at the border will surely raise the wage rate, lower the rental price of capital, and give rise to a welfare gain in the host country under the condition of the low possibility of success for illegal immigration. In other words, if the above condition is not satisfied, the validity of those policies are not assured.

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KJ00004854037

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