The Immigration Surplus Revisited

Clicks: 22
ID: 332834
2026
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Abstract
Abstract We extend the immigration surplus results of Borjas (1995). In a closed competitive constant-returns economy, we show that an influx of migrants (holding their skill mix fixed) must increase the total real income of natives, for any number of factor inputs, any pattern of substitutability or complementarity between them, and any number of intermediate or final goods – with larger gains if natives and migrants differ more in skill mix. If natives supply labour elastically across skill types, their welfare gains are diminished, even if they respond by moving to higher-paying jobs. We illustrate our results using a US calibration.
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openalex_W7167858598 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Michael Amior, Alan Manning
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Journal the economic journal
Year 2026
DOI
10.1093/ej/ueag133
URL
https://doi.org/10.1093/ej/ueag133
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