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A Search-Equilibrium Approach to the Effects of Immigration on Labor Market Outcomes

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  • Andri Chassamboulli
  • Theodore Palivos

Abstract

We analyze the impact of the skill-biased immigration influx that took place during the years 2000-2009 in the United States, within a search and matching model that allows for skill heterogeneity, differential search cost between immigrants and natives, capital-skill complementarity and possibly endogenous skill acquisition. Within such a framework, we find that although the skill-biased immigration raised the overall net income to natives, it may have had distributional effects. Specifically, unskilled native workers gained in terms of both employment and wages. Skilled native workers, on the other hand, gained in terms of employment but may have lost in terms of wages. Nevertheless, in one extension of the model, where skilled workers and immigrants are imperfect substitutes, we find that even the skilled wage may have risen.

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Bibliographic Info

Paper provided by University of Cyprus Department of Economics in its series University of Cyprus Working Papers in Economics with number 17-2012.

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Length: 88 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:ucy:cypeua:17-2012

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Web page: http://www.econ.ucy.ac.cy

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Keywords: Immigration; Search; Unemployment; Skill-heterogeneity;

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References

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Citations

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Cited by:
  1. Cattaneo, Cristina & Fiorio, Carlo V. & Peri, Giovanni, 2013. "What Happens to the Careers of European Workers When Immigrants "Take Their Jobs"?," IZA Discussion Papers 7282, Institute for the Study of Labor (IZA).
  2. Andri Chassamboulli & Theodore Palivos, 2013. "The impact of immigration on the employment and wages of native workers," Working Papers 160, Bank of Greece.
  3. Mette Foged & Giovanni Peri, 2013. "Immigrants and Native Workers: New Analysis Using Longitudinal Employer-Employee Data," NBER Working Papers 19315, National Bureau of Economic Research, Inc.
  4. Dai, Tiantian & Liu, Xiangbo & Xie, Biancen, 2013. "The impact of immigrants on host country crime," Economics Letters, Elsevier, vol. 119(2), pages 157-161.
  5. Michele Battisti & Gabriel Felbermayr & Giovanni Peri & Panu Poutvaara, 2014. "Immigration, Search, and Redistribution: A Quantitative Assessment of Native Welfare," NBER Working Papers 20131, National Bureau of Economic Research, Inc.

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