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Publication year
Immigration and Spatial Equilibrium: The Role of Expenditures in the Country of Origin
Resource type
Authors/contributors
- Albert, Christoph (Author)
- Monras, Joan (Author)
Title
Immigration and Spatial Equilibrium: The Role of Expenditures in the Country of Origin
Abstract
We document that international migrants concentrate more in expensive cities—the more so, the lower the prices in their origin countries are—and consume less locally than comparable natives. We rationalize this empirical evidence by introducing a quantitative spatial equilibrium model, in which a part of immigrants' income goes toward consumption in their origin countries. Using counterfactual simulations, we show that, due to this novel consumption channel, immigrants move economic activity toward expensive, high-productivity locations. This leads to a more efficient spatial allocation of labor and, as a result, increases the aggregate output and welfare of natives.
Publication
American Economic Review
Volume
112
Issue
11
Pages
3763-3802
Date
2022-11
Citation
Albert, C., & Monras, J. (2022). Immigration and Spatial Equilibrium: The Role of Expenditures in the Country of Origin. American Economic Review, 112, 3763–3802.
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