I am a 5th year PhD student in economics at University of California, Riverside. I will be attending the 2011 AEA conference in Denver.
Contact Info
Department of Economics
University of California, Riverside
4128 Sproul Hall, Riverside, CA, 92521 USA
Phone: +1-626-236-6966
E-mail: xliu005@ucr.edu
Research
Labor Market Search and the Dynamic Effects of Immigration (Job Market Paper)
Abstract: This paper examines the effects of both skilled and unskilled immigration on the native population. To achieve this, I develop a dynamic general equilibrium model with skill heterogeneity and labor market frictions. The model captures two opposing effects of immigration. First, native and immigrant workers of the same skill group search in the same labor market. This creates a job displacement effect of immigration. Second, workers with different skills are complementary in the production process. Thus, immigrants might benefit the natives in a different skill group. A calibrated version of the model is used to quantify these effects. In the numerical analysis, I also examine how unemployment benefits can be used to mitigate the welfare loss due to immigration.
Publication
On the Macroeconomic and Welfare Effects of Illegal Immigration
Journal of Economic Dynamics and Control, Volume 34, Issue 12, 2010.
Abstract: This paper uses a dynamic general equilibrium model with labor market frictions to explore the economic consequences of illegal immigration. In the baseline model, native workers and illegal foreign workers compete for jobs in the same market, but serve as imperfect substitutes in production. The calibrated model generates a U-shaped relationship between long-run domestic consumption and the population share of illegal immigrants. After taking into account both consumption and leisure, I found that an increase in illegal immigration can generate significant welfare gains for the natives. The baseline model is then extended to include heterogeneous workers in the domestic population.
Contact Info
Department of Economics
University of California, Riverside
4128 Sproul Hall, Riverside, CA, 92521 USA
Phone: +1-626-236-6966
E-mail: xliu005@ucr.edu
Research
Labor Market Search and the Dynamic Effects of Immigration (Job Market Paper)
Abstract: This paper examines the effects of both skilled and unskilled immigration on the native population. To achieve this, I develop a dynamic general equilibrium model with skill heterogeneity and labor market frictions. The model captures two opposing effects of immigration. First, native and immigrant workers of the same skill group search in the same labor market. This creates a job displacement effect of immigration. Second, workers with different skills are complementary in the production process. Thus, immigrants might benefit the natives in a different skill group. A calibrated version of the model is used to quantify these effects. In the numerical analysis, I also examine how unemployment benefits can be used to mitigate the welfare loss due to immigration.
Publication
On the Macroeconomic and Welfare Effects of Illegal Immigration
Journal of Economic Dynamics and Control, Volume 34, Issue 12, 2010.
Abstract: This paper uses a dynamic general equilibrium model with labor market frictions to explore the economic consequences of illegal immigration. In the baseline model, native workers and illegal foreign workers compete for jobs in the same market, but serve as imperfect substitutes in production. The calibrated model generates a U-shaped relationship between long-run domestic consumption and the population share of illegal immigrants. After taking into account both consumption and leisure, I found that an increase in illegal immigration can generate significant welfare gains for the natives. The baseline model is then extended to include heterogeneous workers in the domestic population.
