Nuremberg Research Seminar in Economics on 3 November 2021 – ZOOM
You are invited to join the weekly Nuremberg Research Seminar in Economics on 3 November 2021, from 13.15 to 14.45 pm. The seminar will be held via Zoom. Joan Monràs (Barcelona School of Economics) will be talking about “Immigration and Spatial Equilibrium: The Role of Expenditures in the Country of Origin”.
More information can be found here:
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 towards 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.