Unemployment, Technology and the Welfare Effects of Immigration
AbstractThis 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 InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre in its series Discussion Papers with number 611.
Date of creation: 2003
Date of revision:
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, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
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.:
- David Card & Thomas Lemieux, 2001.
"Can Falling Supply Explain The Rising Return To College For Younger Men? A Cohort-Based Analysis,"
The Quarterly Journal of Economics,
MIT Press, vol. 116(2), pages 705-746, May.
- David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc.
- Jennifer Hunt, 1992. "The impact of the 1962 repatriates from Algeria on the French labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
- Razin, A. & Sadka, E. & Swagel, P., 1998.
"Tax Burden and Migration: a Political Economy Theory and Evidence,"
15-98, Tel Aviv.
- Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
- Assaf Razin & Effraim Sadka & Phillip Swagel, 1998. "Tax Burden and Migration: A Political Economy Theory and Evidence," NBER Working Papers 6734, National Bureau of Economic Research, Inc.
- Michael S. Michael, 2002.
"International Migration, Income Taxes and Transfers: A Welfare Analysis,"
CESifo Working Paper Series
780, CESifo Group Munich.
- Michael, Michael S., 2003. "International migration, income taxes and transfers: a welfare analysis," Journal of Development Economics, Elsevier, vol. 72(1), pages 401-411, October.
- George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
- Michael, Michael S. & Hatzipanayotou, Panos, 2001.
"Welfare effects of migration in societies with indirect taxes, income transfers and public good provision,"
Journal of Development Economics,
Elsevier, vol. 64(1), pages 1-24, February.
- Michael S. Michael & Panos Hatzipanayotou, 2000. "Welfare Effects of Migration in Societies with Indirect Taxes, Income Transfers and Public Good Provision," CESifo Working Paper Series 347, CESifo Group Munich.
- Assaf Razin & Efraim Sadka, 1999.
"Unskilled Migration: A Burden or a Boon for the Welfare State,"
NBER Working Papers
7013, National Bureau of Economic Research, Inc.
- Razin, Assaf & Sadka, Efraim, 2000. " Unskilled Migration: A Burden or a Boon for the Welfare State?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 463-79, June.
- Razin, A. & Sadka, E., 1999. "Unskilled Migration: a Burden or a Boon for the Welfare State?," Papers 8-99, Tel Aviv.
- Fuest, Clemens & Thum, Marcel, 2000.
"Welfare effects of immigration in a dual labor market,"
Regional Science and Urban Economics,
Elsevier, vol. 30(5), pages 551-563, September.
- Clemens Fuest & Marcel Thum, 1999. "Welfare Effects of Immigration in a Dual Labor Market," CESifo Working Paper Series 215, CESifo Group Munich.
- Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
- Berry, R Albert & Soligo, Ronald, 1969. "Some Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 77(5), pages 778-94, Sept./Oct.
- Casarico, Alessandra & Devillanova, Carlo, 2003. "Social security and migration with endogenous skill upgrading," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 773-797, March.
- Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
- Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 31-48, 03.
- Dominique Gross, 2002. "Three million foreigners, three million unemployed? Immigration flows and the labour market in France," Applied Economics, Taylor & Francis Journals, vol. 34(16), pages 1969-1983.
- Ortega, Javier, 2000. "Pareto-Improving Immigration in an Economy with Equilibrium Unemployment," Economic Journal, Royal Economic Society, vol. 110(460), pages 92-112, January.
- George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
- David E. Wildasin, 1994.
"Income Redistribution and Migration,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 27(3), pages 637-56, August.
- Brecher, Richard A. & Choudhri, Ehsan U., 1987. "International migration versus foreign investment in the presence of unemployment," Journal of International Economics, Elsevier, vol. 23(3-4), pages 329-342, November.
- Epstein, Gil S. & Hillman, Arye L., 2003. "Unemployed immigrants and voter sentiment in the welfare state," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1641-1655, August.
- Wellisch, Dietmar & Walz, Uwe, 1998. "Why do rich countries prefer free trade over free migration? The role of the modern welfare state," European Economic Review, Elsevier, vol. 42(8), pages 1595-1612, September.
- Kemnitz, Alexander, 2004.
"Immigration as a Commitment Device,"
614, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katharina Rautenberg).
If references are entirely missing, you can add them using this form.