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Unemployment and the Immigration Surplus

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Author Info
Udo Kreickemeier
Michael S. Michael

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Abstract

Within a small open economy fair wage model with unemployment of unskilled workers, we show that exogenous unskilled immigration increases the welfare of natives if the elasticity of the inverse labour demands exceeds a positive finite threshold. This threshold depends positively on the displacement ratio of native workers by immigrants and negatively on the share of immigrants in the unskilled workforce.

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File URL: http://www.gep.org.uk/shared/shared_levpublications/Research_Papers/2008/2008_31.pdf
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Publisher Info
Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 08/31.

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Handle: RePEc:not:notgep:08/31

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Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/economics/
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Related research
Keywords: Immigration; Unemployment; Fair Wages;

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This page was last updated on 2009-11-10.

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