I show how the influences of unskilled immigration, differential fertility between immigrants and the local indigenous population, and incentives for investment in human capital combine to predict the decline of the West. In particular, indigenous low-skilled workers lose from unskilled...

This paper is inspired by a puzzling empirical fact that despite the importance of controlling migration for their future, the host countries allocate very limited amounts of resources to the struggle against illegal immigration. The present model analyzes this issue in the context of low...

Men's additional income from their guest-worker employment generates a pure income effect, which increases fertility. The timing of women's higher-wage employment relative to child bearing is crucial for its effect on fertility. If women work abroad during the same time period when they can bear...