Economic benefits of immigration for natives: the effects of immigrants through the school system

Abstract

AbstractImmigration can have indirect negative effects, such as the additional burden of providing education to immigrant children who may need more support than native children to master the culture, customs, and language of the host country. This also leads to a transition of labor from the consumption sector to the education sector and a change in the number of children through the costs of education. Thus, using an overlapping generation model, we examine the effects of immigration on the welfare of the native population with the burden of providing schooling to native and immigrant children with endogenous fertility rates and endogenous unemployment rates. The results indicate that immigration may improve the welfare of the native population when the number of educators required for immigrant children is sufficiently low. Moreover, whether immigration improves the welfare of the native population depends not on the productivity of immigrants but on the increment in the number of educators caused by immigration.