Simulating the impact of immigration on wages and unemployment
AbstractThis paper looks at the effects of migration in labour market models that allow for un-employment in equilibrium. We include three different models: a competitive labour market model, a wage bargaining model and an efficiency wage model. We simulate a one-percentage point increase in the labour force due to migration. Simulation results show that effects of migration do not differ that much between different labour market models: wages decrease with 0.3% to 0.4% and the unemployment rate increases with at most 0.24 percentage points. Migration also positively affects public financing by increasing government's budget with 0.3% to 0.5%.
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Bibliographic InfoPaper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2005036.
Length: 20 pages
Date of creation: Dec 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-26 (All new papers)
- NEP-CMP-2006-02-26 (Computational Economics)
- NEP-LAB-2006-02-26 (Labour Economics)
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