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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- Clemens Fuest & Marcel Thum, 1999.
"Immigration and Skill Formation in Unionised Labour Markets,"
CESifo Working Paper Series
214, CESifo Group Munich.
- Fuest, Clemens & Thum, Marcel, 2001. "Immigration and skill formation in unionised labour markets," European Journal of Political Economy, Elsevier, vol. 17(3), pages 557-573, September.
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- Alexander Kemnitz, 2008.
"Native Welfare Losses from High Skilled Immigration,"
CESifo Working Paper Series
2409, CESifo Group Munich.
- Alexander Kemnitz, 2009. "Native welfare losses from high skilled immigration," International Tax and Public Finance, Springer, vol. 16(4), pages 560-570, August.
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- David Card, 2005.
"Is the New Immigration Really so Bad?,"
Royal Economic Society, vol. 115(507), pages F300-F323, November.
- David Card, 2004. "Is the New Immigration Really So Bad?," CReAM Discussion Paper Series 0402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Card, David, 2004. "Is the New Immigration Really So Bad?," IZA Discussion Papers 1119, Institute for the Study of Labor (IZA).
- David Card, 2005. "Is the New Immigration Really So Bad?," NBER Working Papers 11547, National Bureau of Economic Research, Inc.
- 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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