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Temporary and Permanent Immigration under Unionization

Author

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  • Laixun Zhao
  • Kenji Kondoh

Abstract

This paper investigates permanent and temporary immigration and remittance under the coexistence of unionized and non‐unionized manufacturing firms in a two‐sector economy. The impacts of immigration and remittance on respectively wages, employment, the union–non‐union wage gap and national welfare are analyzed. It is found that both permanent immigration (economy‐wide) and temporary immigration in agriculture bring positive effects on most variables (except the competitive wage), but widens the wage gap and causes income redistribution in the host country. However, if temporary immigrants work in manufacturing only, then all wages and the union–non‐union wage gap fall. That is, workers become more equally paid but poorer. In addition, remittance and globalization cause negative effects on union workers and employers. It is perhaps such consequences and the income redistribution effect of immigration that cause the media to paint a negative image of immigration.

Suggested Citation

  • Laixun Zhao & Kenji Kondoh, 2007. "Temporary and Permanent Immigration under Unionization," Review of Development Economics, Wiley Blackwell, vol. 11(2), pages 346-358, May.
    • Handle: RePEc:bla:rdevec:v:11:y:2007:i:2:p:346-358
    DOI: 10.1111/j.1467-9361.2007.00417.x
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    Cited by:

    1. Toshihiro Atsumi, 2012. "Immigration with imperfect competition: a comment," Economics Bulletin, AccessEcon, vol. 32(3), pages 2624-2628.
    2. Wei Tian & Miaojie Yu, 2014. "Special Issue: Issues in Asia. Guest Editor: Laixun Zhao," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 231-253, May.
    3. Elena Podrecca & Gianpaolo Rossini, 2015. "International Factor Mobility, Wages and Prices," Review of Development Economics, Wiley Blackwell, vol. 19(3), pages 683-694, August.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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