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Wage Effects of Labour Migration with International Capital Mobility

  • Joakim Ruist
  • Arne Bigsten

Wage effects of immigration are investigated in a setting with international capital mobility, which eliminates two-thirds of the native wage-effects of immigration. Without international capital mobility, overall gains from migration in the immigration region are only a small fraction of total losses to native workers, but with perfect international capital adjustment, overall gains are larger than total losses to native workers. Two alternative tax policies to eliminate the negative wage-effects of immigration on low skilled native workers are evaluated.

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Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 36 (2013)
Issue (Month): 1 (01)
Pages: 31-47

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Handle: RePEc:bla:worlde:v:36:y:2013:i:1:p:31-47
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  1. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
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  9. Kevin H. O'Rourke & George R. Boyer & T. J. Hatton, 1993. "The impact of emigration on real wages in Ireland 1850-1914," Working Papers 199326, School of Economics, University College Dublin.
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  12. Samuel de Abreu Pessoa & Silvia Matos Pessoa & Rafael Rob, 2005. "Elasticity of Substitution between Capital and Labor and its applications to growth and development," PIER Working Paper Archive 05-012, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
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