Immigration, education and native wage inequality
AbstractIn this paper we analyse the effect of immigration on the labour market prospects for different skill groups among natives. We develop a model of endogenous labour supply in which immigration affects educational decisions of natives. We argue that the distributional consequences of immigration with respect to native between-skill-group inequality are ambiguous in general and crucially depend on the host country's level of educational attainment. We show that this result is robust irrespective of labour market institutions as, e.g., with a rigid wage regime featuring unemployment. Additionally, the model is applied to assess the impact on within-skill-group wage inequality. --
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Bibliographic InfoPaper provided by German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung in its series Working Papers with number 01/2010.
Date of creation: 2010
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Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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- David Card, 2004.
"Is the New Immigration Really So Bad?,"
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0402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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CESifo Working Paper Series
214, CESifo Group Munich.
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"Native Welfare Losses from High Skilled Immigration,"
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16/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- Alexander Kemnitz, 2009. "Native welfare losses from high skilled immigration," International Tax and Public Finance, Springer, vol. 16(4), pages 560-570, August.
- Alexander Kemnitz, 2008. "Native Welfare Losses from High Skilled Immigration," CESifo Working Paper Series 2409, CESifo Group Munich.
- Chiswick, Carmel U, 1989. "The Impact of Immigration on the Human Capital of Natives," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 464-86, October.
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