Long term impact of an immigration shock

Abstract: In this thesis an OLG model is used to estimate long term effects of an low-skilled immigration shock similar to the Refugee Crisis faced by the European economies in 2015-2016. The aim is to provide tools and an anaytical starting point for rational discussion in the highly politicised debate by evaluating the impacts of the population shock under different policy options. The main finding is that while there are some negative impacts on the economy from the population shock, both in terms of aggregate output and utility, the negative impact is minimal and the different policies mainly differ the outcomes on how the negative impacts manifest themselves on the population.