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Temporary and Permanent Immigration under Unionization

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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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    File URL: https://doi.org/10.1111/j.1467-9361.2007.00417.x
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    References listed on IDEAS

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    1. Mezzetti, Claudio & Dinopoulos, Elias, 1991. "Domestic unionization and import competition," Journal of International Economics, Elsevier, vol. 31(1-2), pages 79-100, August.
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    4. Ethier, Wilfred J, 1986. "Illegal Immigration," American Economic Review, American Economic Association, vol. 76(2), pages 258-262, May.
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    7. Clemens Fuest & Marcel Thum, 1999. "Immigration and Skill Formation in Unionised Labour Markets," CESifo Working Paper Series 214, CESifo Group Munich.
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    9. McCormick, Barry & Wahba, Jackline, 2000. "Overseas Employment and Remittances to a Dual Economy," Economic Journal, Royal Economic Society, vol. 110(463), pages 509-534, April.
    10. Calvo, Guillermo A, 1978. "Urban Employment and Wage Determination in LDC's: Trade Unions in the Harris-Todaro Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(1), pages 65-81, February.
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    14. Fuest, Clemens & Thum, Marcel, 2000. "Welfare effects of immigration in a dual labor market," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 551-563, September.
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    Cited by:

    1. Wei Tian & Miaojie Yu, 2014. "Measuring the Impact of Trade Protection on Industrial Production Size," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 231-253, May.
    2. Elena Podrecca & Gianpaolo Rossini, 2015. "International Factor Mobility, Wages and Prices," Review of Development Economics, Wiley Blackwell, vol. 19(3), pages 683-694, August.
    3. Toshihiro Atsumi, 2012. "Immigration with imperfect competition: a comment," Economics Bulletin, AccessEcon, vol. 32(3), pages 2624-2628.

    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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