Illegal immigration, technology adoption and welfare

Nabin, Munirul H. and Sgro, Pasquale M. 2013, Illegal immigration, technology adoption and welfare, Asia-Pacific journal of accounting & economics, vol. 20, no. 2, pp. 183-198, doi: 10.1080/16081625.2012.738803.

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Title Illegal immigration, technology adoption and welfare
Author(s) Nabin, Munirul H.ORCID iD for Nabin, Munirul H.
Sgro, Pasquale M.ORCID iD for Sgro, Pasquale M.
Journal name Asia-Pacific journal of accounting & economics
Volume number 20
Issue number 2
Start page 183
End page 198
Total pages 16
Publisher Taylor & Francis
Place of publication Kowloon, Hong Kong
Publication date 2013
ISSN 1608-1625
Keyword(s) illegal immigration
technology adoption
Cournot competition and welfare
Summary A debate in the illegal immigration and technology adoption literature suggests that hiring illegal immigrants may be hindering the adoption of new technology, which in turn harms a country’s productivity growth. This paper analyses an individual firm’s behaviour regarding new technology adoption in the presence of illegal immigrants. We assume a Ricardian economy and analyse immigration of illegal unskilled workers in a model of Cournot duopoly where firms are producing homogenous and non-traded goods, and hiring illegal immigrants. A two-stage simultaneous move game is set up: in Stage 1, given the opportunity of hiring illegal immigrants, an individual firm decides whether to adopt the new technology or not, where technology adoption is costly. In Stage 2, each firm will choose the Cournot output level. Solving this two-stage game, we conclude that (i) given the opportunity of hiring illegal immigrants, an individual firm may adopt the new technology and (ii) in the case of zero tolerance of illegal immigration, technology adoption may increase but such technology adoption is immiserizing as it reduces the total surplus.
Language eng
DOI 10.1080/16081625.2012.738803
Field of Research 140207 Financial Economics
Socio Economic Objective 900301 Economic Issues in Tourism
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2013, Taylor & Francis
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