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Migration, the Quality of the Labour Force and Economic Inequality

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Author Info
Kahanec, Martin () (IZA)
Zimmermann, Klaus F. () (IZA, DIW Berlin and Bonn University)

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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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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3560.

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Length: 29 pages
Date of creation: Jun 2008
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Handle: RePEc:iza:izadps:dp3560

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Related research
Keywords: inequality; income distribution; human capital; skill allocation; migration; ethnicity; minority; Gini-coefficient;

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Find related papers by JEL classification:
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
E25 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Winkelmann, Rainer & Zimmermann, Klaus F, 1992. "Ageing, Migration and Labour Mobility," CEPR Discussion Papers 706, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Martin Kahanec, 2007. "Ethnic Competition and Specialization," IZA Discussion Papers 3167, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Barry R. Chiswick & Yinon Cohen & Tzippi Zach, 1997. "The labor market status of immigrants: Effects of the unemployment rate at arrival and duration of residence," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 50(2), pages 289-303, January.
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  7. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October. [Downloadable!] (restricted)
  8. Lawrence F. Katz & Kevin M. Murphy, 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," NBER Working Papers 3927, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Workforce: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1.
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    Other versions:
  11. Rachel M. Friedberg, 2001. "The Impact Of Mass Migration On The Israeli Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1373-1408, November. [Downloadable!] (restricted)
  12. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October. [Downloadable!] (restricted)
  13. Catalina Amuedo-Dorantes & Sara de la Rica, 2007. "Labour Market Assimilation of Recent Immigrants in Spain," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 45(2), pages 257-284, 06. [Downloadable!] (restricted)
    Other versions:
  14. Chapman, Bruce & Cobb-Clark, Deborah, 1999. "A Comparative Static Model of the Relationship between Immigration and the Short-Run Job Prospects of Unemployed Residents," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 358-68, December.
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  16. Randall Filer, 1992. "The Effect of Immigrant Arrivals on Migratory Patterns of Native Workers," NBER Chapters, in: Immigration and the Workforce: Economic Consequences for the United States and Source Areas, pages 245-270 National Bureau of Economic Research, Inc. [Downloadable!]
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    Other versions:
  18. Pia M. Orrenius & Madeline Zavodny, 2003. "Does immigration affect wages? A look at occupation-level evidence," Working Papers 03-02, Federal Reserve Bank of Dallas. [Downloadable!]
    Other versions:
  19. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the UK Labour Market," CReAM Discussion Paper Series 0501, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
  20. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer, vol. 15(1), pages 31-57. [Downloadable!] (restricted)
    Other versions:
  21. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November. [Downloadable!] (restricted)
  22. George J. Borjas, 1987. "Immigrants, Minorities, and Labor Market Competition," NBER Working Papers 2028, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  23. Addison, Thomas & Worswick, Christopher, 2002. "The Impact of Immigration on the Earnings of Natives: Evidence from Australian Micro Data," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 68-78, March. [Downloadable!] (restricted)
  24. Amelie Constant & Douglas S. Massey, 2003. "Self-selection, earnings, and out-migration: A longitudinal study of immigrants to Germany," Journal of Population Economics, Springer, vol. 16(4), pages 631-653, November. [Downloadable!] (restricted)
    Other versions:
  25. Zimmermann, Klaus F, 1993. "Native Wage Impacts of Foreign Labour: A Random Effects Panel Analysis," CEPR Discussion Papers 851, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  26. Jennifer Hunt, 1992. "The impact of the 1962 repatriates from Algeria on the French labor market," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 45(3), pages 556-572, April.
  27. George J. Borjas, 1994. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," NBER Working Papers 4866, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  28. George J. Borjas, 2006. "Immigration in High-Skill Labor Markets: The Impact of Foreign Students on the Earnings of Doctorates," NBER Working Papers 12085, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  29. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November. [Downloadable!] (restricted)
  30. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  31. Borjas, George J, 1983. "The Substitutability of Black, Hispanic, and White Labor," Economic Inquiry, Oxford University Press, vol. 21(1), pages 93-106, January.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute for the Study of Labor (IZA). [Downloadable!]
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