FIW Working Papers | 2017-01

Refugee Resettlement, Redistribution and Growth

This paper studies the effect of refugee resettlement on human capital accumulation. The analysis is performed in a growth model with endogenous fertility. I propose a redistribution scheme and show that refugee resettlement from a more advanced and wealthier economy to a less advanced and less wealthy economy combined with income transfers can give rise to conditions in which utility of indigenous populations in both countries increases. I also derive conditions for the proposed resettlement policy to stimulate human capital accumulation and hence economic growth in both economies.