A new NBER paper looks at migration from poor to rich countries over 25 years:
We find that immigration increases employment, with no evidence of crowding-out of natives, and that investment responds rapidly and vigorously. The inflow of immigrants does not seem to reduce capital intensity nor total factor productivity in the short-run or in the long run.
These results imply that immigration increases the total GDP of the receiving country in the short-run one-for-one, without affecting average wages and average income per person.
The ungated version, by Francesc Ortega and Giovanni Peri, here.
One Response
If by both sides you mean the immigrant and the country of immigration. This paper says nothing about the country of emigration or the immigrant’s compatriots left at home (i.e. “brain drain”).