IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v6y2000i3p404-41610.1007-bf02294960.html
   My bibliography  Save this article

Restricted immigration in a two-sector economy

Author

Listed:
  • Dieter Gstach
  • Thomas Grandner

Abstract

This paper will analyze income redistribution and fiscal effects caused by immigration in a two-sector economy, where one sector is closed and where foreign and domestic labor are homogeneous. The setup of this model is guided by the stylized fact that today's immigrants in the European Union are distributed highly unequal across sectors, with a clear concentration in low-income sectors. Unlike many previous studies, we do not interpret this segmentation by means of differential skills because we focus on tomorrow's potential immigrants from former communist countries in northeastern Europe, which exhibit education levels similar to those of western European workers. Contrary to results from one-sector models, some pure wage earners may also win from immigration as a result of changing relative prices. Therefore, the political support for immigration depends not only on the capital ownership distribution, but also on relative immigration sector size and relative sector productivity. Furthermore, the necessary tax rate to finance the transfer system may decrease as a result of immigration. Copyright International Atlantic Economic Society 2000

Suggested Citation

  • Dieter Gstach & Thomas Grandner, 2000. "Restricted immigration in a two-sector economy," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(3), pages 404-416, August.
    • Handle: RePEc:kap:iaecre:v:6:y:2000:i:3:p:404-416:10.1007/bf02294960
    DOI: 10.1007/BF02294960
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02294960
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02294960?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    2. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 177-192.
    3. Oscar Flores, 1997. "The political economy of immigration quotas," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 25(1), pages 50-59, March.
    4. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
    5. Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
    6. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
    7. Assaf Razin & Efraim Sadka, 1996. "Tax Burden and Migration: A Political Economy Perspective," NBER Working Papers 5850, National Bureau of Economic Research, Inc.
    8. Francisco L. Rivera-Batiz, 2018. "Trade Theory, Distribution of Income and Immigration," World Scientific Book Chapters, in: Francisco L Rivera-Batiz (ed.), International and Interregional Migration Theory and Evidence, chapter 1, pages 3-11, World Scientific Publishing Co. Pte. Ltd..
    9. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 1998. "Tax Burden and Migration," Economics Series 59, Institute for Advanced Studies.
    10. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    11. Ingrid KUBIN & Peter ROSNER, 1996. "Immigration, Growth, and Distribution," Vienna Economics Papers vie9606, University of Vienna, Department of Economics.
    12. Kenneth F. Scheve & Matthew J. Slaughter, 1999. "Labor-Market Competition and Individual Preferences Over Immigration Policy," NBER Working Papers 6946, National Bureau of Economic Research, Inc.
    13. Wellisch, Dietmar & Walz, Uwe, 1998. "Why do rich countries prefer free trade over free migration? The role of the modern welfare state," European Economic Review, Elsevier, vol. 42(8), pages 1595-1612, September.
    14. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nannestad, Peter, 2007. "Immigration and welfare states: A survey of 15 years of research," European Journal of Political Economy, Elsevier, vol. 23(2), pages 512-532, June.
    2. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," School of Economics Discussion Papers 0103, School of Economics, University of Surrey.
    3. Karin Mayr, 2003. "Immigration and Majority Voting on Income Redistriubtion-Is there a Case for Opposition from Natives?," Economics working papers 2003-08, Department of Economics, Johannes Kepler University Linz, Austria.
    4. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    5. Agiomirgianakis, George & Zervoyianni, Athina, 2001. "Macroeconomic equilibrium with illegal immigration," Economic Modelling, Elsevier, vol. 18(2), pages 181-202, April.
    6. Hercowitz, Z. & Yashiv, E., 1999. "A Macroeconomic Experiment in Mass Immigration," Papers 15-99, Tel Aviv.
    7. Mohd Imran Khan, 2021. "Consequences of Labour Migration on Wages and Employment: Evidence from India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(1), pages 23-47, March.
    8. Giovanni Facchini & Anna Maria Mayda, 2006. "Individual Attitudes towards Immigrants: Welfare-State Determinants across Countries," CESifo Working Paper Series 1768, CESifo.
    9. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
    10. Jean-Marie Grether & Jaime de Melo & Tobias Müller, 2015. "The Political Economy of International Migration in a Ricardo–Viner Model," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 17, pages 411-437, World Scientific Publishing Co. Pte. Ltd..
    11. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    12. Isil Erol & Umut Unal, 2021. "Employment Effects of Immigration to Germany in the Period of Migration Policy Liberalization, 2005–2018," MAGKS Papers on Economics 202104, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Hansen, Jorgen Drud, 2003. "Immigration and income redistribution in welfare states," European Journal of Political Economy, Elsevier, vol. 19(4), pages 735-746, November.
    14. Warin Thierry & Svaton Pavel, 2008. "European Migration: Welfare Migration or Economic Migration?," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-32, September.
    15. Isil Erol & Umut Unal, 2022. "Employment effects of immigration to Germany in the period of migration policy liberalization, 2005–2018," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 531-565, September.
    16. Kemnitz, Alexander, 2003. "Unemployment, Technology and the Welfare Effects of Immigration," Discussion Papers 611, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    17. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
    18. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Skilled Immigration and the Employment Structures of US Firms," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 147-186.
    19. Fidrmuc, Jan, 2001. "Migration and adjustment to shocks in transition economies," ZEI Working Papers B 23-2001, University of Bonn, ZEI - Center for European Integration Studies.
    20. Gabriel J Felbermayr & Wilhelm Kohler, 2014. "Immigration and Native Welfare," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 10, pages 335-372, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:6:y:2000:i:3:p:404-416:10.1007/bf02294960. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.