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- W3124989691 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 counter-factual 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. (JEL F24, J15, J31, J61, R23)" @default.
- W3124989691 created "2021-02-01" @default.
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- W3124989691 date "2022-11-01" @default.
- W3124989691 modified "2023-09-28" @default.
- W3124989691 title "Immigration and Spatial Equilibrium: The Role of Expenditures in the Country of Origin" @default.
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- W3124989691 doi "https://doi.org/10.1257/aer.20211241" @default.
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