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Migration, the Quality of the Labour Force and Economic Inequality

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  • Kahanec, Martin
  • Zimmermann, Klaus F

Abstract

Mobility of workers involves flows of labour, human capital and other production factors and thus contributes to a more efficient allocation of resources. Besides these effects on allocative efficiency, migrant flows affect relative wages and also change the international and national distribution of skills and thereby equality in the receiving society. This paper suggests that skilled immigration promotes economic equality in advanced economies under standard conditions. The context is theoretically explained in a core model and empirically documented using unique data from the WIID database and OECD.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6899.

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Date of creation: Jul 2008
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Handle: RePEc:cpr:ceprdp:6899

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Keywords: ethnicity; Gini-coefficient; human capital; income distribution; Inequality; migration; minority; skill allocation;

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Citations

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Cited by:
  1. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute for the Study of Labor (IZA).
  2. Martin Kahanec & Renáta Králiková, 2012. "Higher Education Policy and Migration: The Role of International Student Mobility," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(4), pages 20-27, 02.
  3. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2010. "Ethnic Minorities in the European Union: An Overview," Discussion Papers of DIW Berlin 1090, DIW Berlin, German Institute for Economic Research.
  4. Kahanec, Martin & Králiková, Renáta, 2011. "Pulls of International Student Mobility," IZA Discussion Papers 6233, Institute for the Study of Labor (IZA).

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