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Immigration in a Segmented Labor Market: The Effects on Welfare

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Author Info
Javier Vázquez Grenno

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Abstract

Using an OLG model with pension system and unemployment insurance, this paper analyses the effect of low-skilled immigration (regular and irregular) shocks on the wellbeing of the native people. We show that low-skilled immigration benefits the pensioners of the initial period and skilled native workers, and damages the low-skilled ones. Furthermore, we show that the unskilled immigration decreases the pension and unemployment benefits, and increases the unemployment rate. Additionally, the composition of immigration does not affect the unemployment rate in the long run. However, during the transition, the effects of immigration are increasing in the proportion of irregular immigrants.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 64 (2008)
Issue (Month): 2 (June)
Pages: 199-217
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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200806)64:2_199:iiaslm_2.0.tx_2-k

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Related research
Keywords: migration; dynamic system; public pensions; unemployment;

Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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This page was last updated on 2009-12-1.

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