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Native Welfare Losses from High Skilled Immigration

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  • Kemnitz, Alexander

Abstract

This paper explores the effects of high skilled immigration to a host country with unionized low skilled labor and an unemployment insurance scheme. We show that such immigration can create a negative immigration surplus due to adverse effects on low skilled employment, provided that the elasticity between high and low skilled labor is high as empirical evidence suggests. --

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Bibliographic Info

Paper provided by Dresden University of Technology, Faculty of Business and Economics, Department of Economics in its series Dresden Discussion Paper Series in Economics with number 16/07.

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Date of creation: 2007
Date of revision:
Handle: RePEc:zbw:tuddps:1607

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Postal: 01062 Dresden
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Fax: ++49 351 463 7739
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Web page: http://www.tu-dresden.de/wiwi/
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Related research

Keywords: Immigration; Trade Union; Unemployment; Elasticity of Substitution;

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References

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  1. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 11(2), pages 41-54, Spring.
  2. Wolfgang Eggert & Tim Krieger & Volker Meier, 2009. "Education, unemployment and migration," Ifo Working Paper Series Ifo Working Paper Nr. 78, Ifo Institute for Economic Research at the University of Munich.
  3. Alexander Haupt & Eckhard Janeba, 2004. "Education, Redistribution, and the Threat of Brain Drain," NBER Working Papers 10618, National Bureau of Economic Research, Inc.
  4. Chiswick, Barry R., 2005. "High Skilled Immigration in the International Arena," IZA Discussion Papers 1782, Institute for the Study of Labor (IZA).
  5. Panu Poutvaara, 2000. "Education, Mobility of Labour and Tax Competition," International Tax and Public Finance, Springer, Springer, vol. 7(6), pages 699-719, December.
  6. repec:pdn:wpaper:7 is not listed on IDEAS
  7. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, Elsevier, vol. 1(1), pages 19-42, April.
  8. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
  9. Kjetil Storesletten, . "Sustaining Fiscal Policy Through Immigration," Homapage Papers, Stockholm University, Institute for International Economic Studies _005, Stockholm University, Institute for International Economic Studies.
  10. David E. Wildasin, 2000. "Labor-Market Integration, Investment in Risky Human Capital, and Fiscal Competition," American Economic Review, American Economic Association, American Economic Association, vol. 90(1), pages 73-95, March.
  11. 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, MIT Press, vol. 116(2), pages 705-746, May.
  12. Holger Bonin & Bernd Raffelhüschen & Jan Walliser, 2000. "Can Immigration Alleviate the Demographic Burden?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 57(1), pages 1-, September.
  13. Nicolas Schmitt & Antoine Soubeyran, 2005. "A Simple Model of Brain Circulation," CESifo Working Paper Series 1484, CESifo Group Munich.
  14. Andersson, Fredrik & Konrad, Kai A, 2003. "Globalization and Risky Human-Capital Investment," International Tax and Public Finance, Springer, Springer, vol. 10(3), pages 211-28, May.
  15. Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, Elsevier, vol. 74(1), pages 141-150, October.
  16. Michael S. Michael, 2006. "Are Migration Policies that Induce Skilled (Unskilled) Migration Beneficial (Harmful) for the Host Country?," CESifo Working Paper Series 1814, CESifo Group Munich.
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Citations

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Cited by:
  1. Wido Geis, 2009. "Does Educational Choice Erode the Immigration Surplus?," Ifo Working Paper Series Ifo Working Paper Nr. 80, Ifo Institute for Economic Research at the University of Munich.
  2. Moritz Bonn, 2011. "The Effects of High Skilled Immigration in a Dual Labour Market with Union Wage Setting and Fiscal Redistribution," MAGKS Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 201121, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  3. Moritz Bonn, 2011. "High Skilled Immigration Policy and Union Wage Setting," Volkswirtschaftliche Diskussionsbeiträge, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht 147-11, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht, revised 27 Aug 2012.
  4. Lumpe, Christian & Weigert, Benjamin, 2010. "Immigration, education and native wage inequality," Working Papers 01/2010, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.

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