Unemployment, Technology and the Welfare Effects of Immigration
Abstract
This paper explores the effects of high and low skilled immigration to a host country with unionized low skilled labor and an unemployment insurance scheme. It is shown that the consequences for the labor market and the welfare of natives depend crucially on the host country's production structure. When high and low skilled labor are close substitutes, low skilled immigration boosts employment and can increase total native income. We provide conditions under which low skilled immigration is Pareto-improving. While high skilled immigration has adverse employment effects, the findings reverse for the case of close complementarity.Download Info
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Paper provided by Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre in its series Discussion Papers with number 611.Length:
Date of creation: 2003
Date of revision:
Handle: RePEc:mnh:vpaper:1000
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Related research
Keywords:Find related papers by JEL classification:
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Alexander Kemnitz, 2006.
"Immigration as a commitment device,"
Journal of Population Economics,
Springer, vol. 19(2), pages 299-313, June.
- Kemnitz, Alexander, 2004. "Immigration as a Commitment Device," Discussion Papers 614, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
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