Abstract ：
Long-term effects of tightening immigration policy on native workers of the receiving country are analyzed in a small open overlapping generations model. Such a policy is intended to protect native workers from losing income and possibly jobs. Results demonstrate that a severer policy raises the unskilled wage rate as expected, but it lowers the skilled wage rate only if skilled and unskilled labor are strongly (technically) complementary. Such a policy also lowers the average education level of the country. If skilled labor and unskilled labor are sufficiently complementary, then the policy might instead increase immigration inflows to the country.

Keywords : education, immigration policy, skilled–unskilled labor complementarity

JEL code: D15, F22, F66, O24