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Immigration and native welfare

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Abstract

We unify two approaches towards identifying native welfare effects of immigration, one emphasizing the immigration surplus (Borjas, 1995,1999), the other identifying a welfare loss due to terms-of-trade effects (Davis & Weinstein, 2002). We decompose the native welfare effect of immigration into the standard complementarity effect, augmented by a Stolper-Samuelson effect, and a terms-of-trade effect. Using a structural model with three skill-classes we derive propositions on the wage and native welfare effects of various immigration scenarios. A calibration-based simulation reveals that the size of the inflow and immigrant income repatriation are key determinants of the welfare-ranking of different immigration scenarios.

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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2004-01.

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Date of creation: Feb 2004
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Handle: RePEc:jku:econwp:2004_01

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Keywords: international migration; factor movements; international trade; non-tradable goods; welfare analysis; wages; general equilibrium; terms-of-trade;

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Citations

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Cited by:
  1. Gabriel J Felbermayr & Wilhelm Kohler, 2009. "Can International Migration Ever Be Made a Pareto Improvement?," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 305/2009, Department of Economics, University of Hohenheim, Germany.
  2. Felbermayr, Gabriel J. & Geis, Wido & Kohler, Wilhelm K., 2008. "Restrictive immigration policy in Germany: pains and gains foregone?," Discussion Paper Series 1: Economic Studies 2008,18, Deutsche Bundesbank, Research Centre.
  3. Biavaschi, Costanza & Elsner, Benjamin, 2013. "Let's Be Selective about Migrant Self-Selection," IZA Discussion Papers 7865, Institute for the Study of Labor (IZA).
  4. Vallizadeh, Ehsan & Joan, Muysken & Thomas, Ziesemer, 2012. "The impact of medium-skilled immigration: a general equilibrium approach," MPRA Paper 40006, University Library of Munich, Germany.
  5. Bowen, Harry P. & Pédussel Wu, Jennifer, 2012. "Immigrant specificity and the relationship between trade and immigration: Theory and evidence," Working Papers 70, Institute of Management Berlin (IMB), Berlin School of Economics and Law.
  6. Muysken, Joan & Vallizadeh, Ehsan & Ziesemer, Thomas, 2012. "Migration, Unemployment, and Over-qualification: A Specific-Factors Model Approach," MPRA Paper 43057, University Library of Munich, Germany.
  7. Harry P. Bowen & Jennifer Wu, 2013. "The Impact of Immigrant Gender on International Trade: An Empirical Assessment," Discussion Paper Series 2013-01, McColl School of Business, Queens University of Charlotte.
  8. Muysken, Joan & Vallizadeh, Ehsan & Ziesemer, Thomas, 2012. "The impact of Medium-Skilled immigration: A general equilibrium approach," UNU-MERIT Working Paper Series 055, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  9. Karin Mayr, 2008. "Optimal quota for sector-specific immigration," The Institute for International Integration Studies Discussion Paper Series iiisdp254, IIIS.
  10. Junko Doi & Laixun Zhao, 2012. "Immigration Conflicts," Discussion Paper Series DP2012-29, Research Institute for Economics & Business Administration, Kobe University, revised Dec 2012.
  11. Udo Kreickemeier & Michael S. Michael, . "Unemployment and the Immigration Surplus," Discussion Papers 08/31, University of Nottingham, GEP.
  12. Wido Geis, 2009. "Does Educational Choice Erode the Immigration Surplus?," Ifo Working Paper Series Ifo Working Paper Nr. 80, Ifo Institute for Economic Research at the University of Munich.

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