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A Comparative Static Model of the Relationship between Immigration and the Short-Run Job Prospects of Unemployed Residents

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  • Chapman, Bruce
  • Cobb-Clark, Deborah

Abstract

A novel theoretical approach is developed to illustrate the consequences of immigration for the probability that unemployed residents gain a job. Through the use of the vacancies to unemployment ratio it is shown that immigration in theory can either increase or decrease unemployed residents' employment probabilities, but that, contrary to populist rhetoric, an increase is more likely the more recessed is the labour market. With reference to feasible Australian values of the parameters of interest, it is demonstrated that in practically all circumstances immigration increases the overall employment prospects of unemployed residents. Even so, the analysis is very short run, and strong conclusions as to what might be happening over the longer term are not appropriate. Copyright 1999 by The Economic Society of Australia.

Suggested Citation

  • Chapman, Bruce & Cobb-Clark, Deborah, 1999. "A Comparative Static Model of the Relationship between Immigration and the Short-Run Job Prospects of Unemployed Residents," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 358-368, December.
  • Handle: RePEc:bla:ecorec:v:75:y:1999:i:231:p:358-68
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    Cited by:

    1. Timothy J. Hatton & Massimiliano Tani, 2005. "Immigration and Inter-Regional Mobility in the UK, 1982-2000," Economic Journal, Royal Economic Society, vol. 115(507), pages 342-358, November.
    2. Kahanec, Martin & Zimmermann, Klaus F, 2008. "Migration, the Quality of the Labour Force and Economic Inequality," CEPR Discussion Papers 6899, C.E.P.R. Discussion Papers.
    3. Zimmermann, Klaus F. & Kahanec, Martin & Giulietti, Corrado & Guzi, Martin & Barrett, Alan & Maitre, Bertrand, 2012. "Report No. 43: Study on Active Inclusion of Migrants," IZA Research Reports 43, Institute for the Study of Labor (IZA).
    4. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    5. Jaai Parasnis & Dietrich Fausten & Russell Smyth, 2006. "The Impact of Immigration on Native Workers in Australia," Monash Economics Working Papers archive-40, Monash University, Department of Economics.
    6. ., 2012. "Migration impact assessment: a state of the art," Chapters,in: Migration Impact Assessment, chapter 1, pages 3-62 Edward Elgar Publishing.
    7. Martin Kahanec, 2013. "Skilled Labor Flows: Lessons from the European Union," Research Reports 1, Central European Labour Studies Institute (CELSI).
    8. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," CReAM Discussion Paper Series 1104, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    9. Kahanec, Martin, 2012. "Report No. 49: Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
    10. Kahanec, Martin & Zimmermann, Klaus F., 2008. "Migration in an Enlarged EU: A Challenging Solution?," IZA Discussion Papers 3913, Institute for the Study of Labor (IZA).
    11. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute for the Study of Labor (IZA).
    12. Jaai Parasnis, 2010. "Estimating The Relationship Between Immigrant And Native Workers In Australia: A Production Theory Approach," Australian Economic Papers, Wiley Blackwell, vol. 49(1), pages 73-85, March.
    13. Asadul Islam, 2007. "Immigration Unemployment Relationship: The Evidence From Canada ," Australian Economic Papers, Wiley Blackwell, vol. 46(1), pages 52-66, March.

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