Based on the current European discussion about immigration policy, this paper gives an overview of central economic consequences of immigration for a host country=s labor market. The most important theoretical arguments are presented and evaluated against the available empirical evidence. The paper concludes that immigration cannot per se be considered as good or bad for the labor market. Its impact on employment, wages and wealth depends crucially on the design of immigration policy. Immigration of selected workers may create gains in efficiency which also result in positive distributive effects, not only for capital but also for native labor.
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
07.
Length: 15 pages Date of creation: May 1998 Date of revision: Publication status: published in Boesler, Klaus-Achim; Heinrich, Günter; Wiessner, Reinhard (Hrsg.), Europa zwischen Integration und Regionalismus, Franz Steiner Verlag, Stuttgart, 1998, 56-66. Handle: RePEc:iza:izadps:dp7
Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
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