Coherent Identifier About this item: 20.500.12592/2vqwp0

Picking cherries - Evidence on the effects of temporary and seasonal migrants on the New Zealand economy

14 April 2021

Summary

2 model and then deploy the model to predict the likely effects of various scenarios.14 And finally, there are studies that use cross-country comparison of levels of migrants and macro-economic features of economies, like gross domestic product (GDP) per worker, to draw conclusions about the effects of migration.15 The first approach requires a counterfactual to be specified if causality is to be. [...] 5 2.4.2 The ‘canonical model’ of wage and employment impacts Early studies of migration impacts were based on what is often called the ‘canonical model’, in which all workers, whether they are locals or migrants, have the same characteristics.32 The analysis is typically on a partial equilibrium or ‘other things equal’ basis, where the only external change to the economy is the number of immigrant. [...] In the long run, the higher return to capital stimulates investment and in the new equilibrium the capital-labour ratio, the real wage and the marginal product of capital will revert to their original levels under constant returns. [...] • The composition of the economy, and in particular, how large, dynamic and productive the sectors employing migrants are compared to the rest of the economy.56 • The degree of openness to trade – which influences the degree to which prices can adjust (the more open the economy is to trade, the less responsive local prices are).57 2.4.4 Impacts of migration on productivity The study of the impact. [...] 18 3.3.2 Scarcity and reservation wages This brings us to the issue of what labour economists call the ‘reservation wage’: the lowest wage rate at which a worker would be willing to accept a particular type of job.104 While termed a ’wage’, the concept of the reservation wage also applies to non-wage elements of employment, like location, hours of work and the physical dema.

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60