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Integrating the East: The Labour Market Effects of Immigration

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Author Info
Bauer, Thomas
Zimmermann, Klaus F

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Abstract

The paper evaluates the potential gains from labour immigration for the European Union. After a review of the East-West migration problem and recent western migration policies, governmentally controlled labour immigration is studied in a framework with unions, unemployment and heterogenous workers. The model predicts a decline in wages with unskilled and skilled immigration if both types of workers are complements. Only skilled migration reduces unemployment, however. This disequilibrium framework is calibrated using German data and compared with an equilibrium framework to study migration gains and distributional effects. If labour markets are in equilibrium, unskilled immigration will provide larger gains than skilled immigration, but the gains will be small, and partly at the expense of the group of labour that experiences no competitive threat. In the face of unskilled unemployment, unskilled immigration can result in large migration losses while skilled immigration can provide substantial migration gains.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1235.

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Date of creation: Aug 1995
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Handle: RePEc:cpr:ceprdp:1235

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Related research
Keywords: Heterogenous Labour; Immigration Gains; Selective Migration Policy;

Other versions of this item:

Find related papers by JEL classification:
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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  1. Co, Catherine Y. & Yun, Myeong-Su & Gang, Ira N., 1998. "Returns to Returning: Who Went Abroad and What Does it Matter?," IZA Discussion Papers 19, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Bauer, Thomas K. & Zimmermann, Klaus F., 2000. "Immigration Policy in Integrated National Economies," IZA Discussion Papers 170, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Zimmermann, Klaus F., 1999. "Ethnic German Migration since 1989 - Results and Perspectives/ Aussiedler seit 1989 - Bilanz und Perspektiven," IZA Discussion Papers 50, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Wolfgang Pollan, . "Estimating the Economic Effects of Immigration in a Not Strictly Segmented Labor Market. The Case of Germany and Austria," WIFO Working Papers 119, WIFO. [Downloadable!]
  5. Zimmermann, Klaus F., 2004. "European Labour Mobility: Challenges and Potentials," IZA Discussion Papers 1410, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Fuest, Clemens & Thum, Marcel, 1999. "Immigration and Skill Formation in Unionised Labour Markets," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  7. Richard Nahuis & Ashok Parikh, 2004. "Factor Mobility and Regional Disparities: East, West, Home's Best?," Economics Working Papers 026, European Network of Economic Policy Research Institutes. [Downloadable!]
    Other versions:
  8. Rotte, Ralph, 1998. "Sorties from the Fortress: The Current System of Anti-Immigration Policy in Germany," IZA Discussion Papers 13, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Etzo, Ivan, 2008. "Internal migration and growth in Italy," MPRA Paper 8642, University Library of Munich, Germany. [Downloadable!]
  10. Etzo, Ivan, 2008. "Internal migration: a review of the literature," MPRA Paper 8783, University Library of Munich, Germany. [Downloadable!]
  11. Di Bartolomeo Anna & Di Bartolomeo Giovanni, 2007. "Integration of migrants in Italy: A simple general and objective measure," wp.comunite 0010, Department of Communication, University of Teramo. [Downloadable!]
    Other versions:
  12. Alessandra Venturini & Claudia Villosio, 2004. "Labour Market Effects of Immigration: an Empirical Analysis Based on Italian Data," CHILD Working Papers wp17_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
  13. Bauer, Thomas & Zimmermann, Klaus F., 1999. "Occupational Mobility of Ethnic Migrants," IZA Discussion Papers 58, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Zaiceva, Anzelika & Zimmermann, Klaus F., 2008. "Scale, Diversity, and Determinants of Labour Migration in Europe," IZA Discussion Papers 3595, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  15. Venturini, Alessandra & Villosio, Claudia, 2002. "Are Immigrants Competing with Natives in the Italian Labour Market? The Employment Effect," IZA Discussion Papers 467, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Kari E. Alho, 2002. "Labour Markets and Immigration Connected to Enlargement," Discussion Papers 791, The Research Institute of the Finnish Economy. [Downloadable!]
  17. Sjef Ederveen & Richard Nahuis & Ashok Parikh, 2005. "Labour Mobility and Regional Disparities: The role of female labour participation," Working Papers 05-31, Utrecht School of Economics. [Downloadable!]
    Other versions:
  18. Bauer, Thomas K. & Pereira, Pedro T. & Vogler, Michael & Zimmermann, Klaus F., 1998. "Portuguese Migrants in the German Labor Market: Performance and Self-Selection," IZA Discussion Papers 20, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  19. Amelie Constant & Klaus F. Zimmermann, 2005. "Immigrant Performance and Selective Immigration Policy: A European Perspective," IZA Discussion Papers 1715, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-11-25.

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