Economic-demographic effects of immigration: Results from a dynamic spatial microsimulation model

Sweden has a liberal immigration policy compared to other developed countries. However; this policy has been reexamined in recent years. This article examines the economic-demographic effects of immigration using a dynamic spatial microsimulation model called SVERIGE (System for Visualizing Economic and Regional Influences Governing the Environment). It presents simulations that vary three key characteristics of immigration: (1) magnitude, (2) ethnic origins, and (3) settlement characteristics. Outcome variables examined include immigration, emigration, births, population, migration, labor force participation, and average earnings. Preliminary and illustrative results suggest that large immigration flows can be accommodated by a country with modest econoinic-demographic efficcts. Also, the characteristics of immigrants, including initial settlement choice, affect outcomes in different ways.