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Wage Effects of Labour Migration with International Capital Mobility

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  • Joakim Ruist
  • Arne Bigsten

Abstract

Wage effects of immigration are investigated in a setting with international capital mobility, which eliminates two-thirds of the native wage-effects of immigration. Without international capital mobility, overall gains from migration in the immigration region are only a small fraction of total losses to native workers, but with perfect international capital adjustment, overall gains are larger than total losses to native workers. Two alternative tax policies to eliminate the negative wage-effects of immigration on low skilled native workers are evaluated.
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  • Joakim Ruist & Arne Bigsten, 2013. "Wage Effects of Labour Migration with International Capital Mobility," The World Economy, Wiley Blackwell, vol. 36(1), pages 31-47, January.
    • Handle: RePEc:bla:worlde:v:36:y:2013:i:1:p:31-47
    DOI: twec.12006
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    Cited by:

    1. Eric Strobl & Marie-Anne Valfort, 2015. "The Effect of Weather-Induced Internal Migration on Local Labor Markets. Evidence from Uganda," The World Bank Economic Review, World Bank, vol. 29(2), pages 385-412.
    2. repec:ipg:wpaper:2014-460 is not listed on IDEAS

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    More about this item

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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