Does Educational Choice Erode the Immigration Surplus?
Many countries pursue an immigration policy that is targeted at attracting high skilled workers. Borjas (1995) has shown that assuming perfect labor markets immigration leads to a welfare gain for the native population, the so-called immigration surplus. Thus, as the labor market for high skilled workers exhibits few frictions, high skilled immigration should lead to a welfare gain. Nevertheless, this argumentation implicitly assumes that immigration has no influence on the qualification structure of natives. In this paper I show that if natives anticipate high skilled immigration, fewer natives acquire a high education level. In labor markets that are not frictionless this effect can be such strong that high skilled immigration leads to a welfare loss for natives. Moreover, if high skilled migration is expected but not realized, this expectation generates a welfare loss.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2007.
"The Immigration Surplus Revisited In A General Equilibrium Model With Endogenous Growth,"
Journal of Regional Science,
Wiley Blackwell, vol. 47(3), pages 569-601.
- Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Immigration Surplus Revisited in a General Equilibrium Model with Endogenous Growth," School of Economics Discussion Papers 0203, School of Economics, University of Surrey.
- Razin, Assaf & Sadka, Efraim, 1995.
"Resisting Migration: Wage Rigidity and Income Distribution,"
American Economic Review,
American Economic Association, vol. 85(2), pages 312-16, May.
- Razin, Assaf & Sadka, Efraim, 1995. "Resisting Migration: Wage Rigidity and Income Distribution," CEPR Discussion Papers 1091, C.E.P.R. Discussion Papers.
- Razin, A. & Sadka, E., 1992. "Resisting Migration: Wage Rigidity and Income Redistribution," Papers 28-94, Tel Aviv.
- George J. Borjas, 1994.
"The Economic Benefits from Immigration,"
NBER Working Papers
4955, National Bureau of Economic Research, Inc.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004.
"A Meta-Analytic Assessment of the Effect of Immigration on Wages,"
Tinbergen Institute Discussion Papers
04-134/3, Tinbergen Institute.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2005. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 451-477, 07.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Population Studies Centre Discussion Papers dp-47, University of Waikato, Population Studies Centre.
- Gabriel J. Felbermayr & Wilhelm Kohler, 2004.
"Immigration and native welfare,"
Economics working papers
2004-01, Department of Economics, Johannes Kepler University Linz, Austria.
- Frederic, DOCQUIER & Hillel, RAPOPORT, 2007.
"Silled migration : the perspectives of developing countries,"
Discussion Papers (ECON - Département des Sciences Economiques)
2007017, Université catholique de Louvain, Département des Sciences Economiques.
- Docquier, Frédéric & Rapoport, Hillel, 2007. "Skilled Migration: The Perspective of Developing Countries," IZA Discussion Papers 2873, Institute for the Study of Labor (IZA).
- Docquier, Frederic & Rapoport, Hillel, 2004. "Skilled migration: the perspective of developing countries," Policy Research Working Paper Series 3382, The World Bank.
- Frederic Docquier & Hillel Rapoport, 2007. "Skilled migration: the perspective of developing countries," CReAM Discussion Paper Series 0710, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Fuest, Clemens & Thum, Marcel, 2001.
"Immigration and skill formation in unionised labour markets,"
European Journal of Political Economy,
Elsevier, vol. 17(3), pages 557-573, September.
- Clemens Fuest & Marcel Thum, 1999. "Immigration and Skill Formation in Unionised Labour Markets," CESifo Working Paper Series 214, CESifo Group Munich.
- Rodney Ramcharan, 2002. "Migration and Human Capital Formation; Theory and Evidence From the U.S. High School Movement," IMF Working Papers 02/123, International Monetary Fund.
- Stark, Oded & Wang, Yong, 2002.
"Inducing human capital formation: migration as a substitute for subsidies,"
Journal of Public Economics,
Elsevier, vol. 86(1), pages 29-46, October.
- Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
- Berry, R Albert & Soligo, Ronald, 1969. "Some Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 77(5), pages 778-94, Sept./Oct.
- Alexander Kemnitz, 2008.
"Native Welfare Losses from High Skilled Immigration,"
CESifo Working Paper Series
2409, CESifo Group Munich.
- Alexander Kemnitz, 2009. "Native welfare losses from high skilled immigration," International Tax and Public Finance, Springer, vol. 16(4), pages 560-570, August.
- Kemnitz, Alexander, 2007. "Native Welfare Losses from High Skilled Immigration," Dresden Discussion Paper Series in Economics 16/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:ces:ifowps:_80. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If references are entirely missing, you can add them using this form.