Mass Migration, Unions, and Fiscal Migration Policy
Standard economic reasoning based on competitive labour markets suggests that migrant inflow will unambiguously lead to allocative gains for the native population of a host country. Even abstracting from the costs of integration, however, this result is not robust when important labour market imperfections are considered. Much of the migration literature focuses on the determination of the size of the immigration flow given a fixed minimum wage and the level of unemployment in the destination area. By contrast, this paper concentrates on the mechanism of wage determination in the receiving country. The model depicts a situation where one large monopoly union acts on behalf of the whole workforce. Depending on the arguments of the union objective function and on whether labour is heterogeneous, an optimal size of immigration may exist. These considerations could form the basis for welfare-improving government policies.
|Date of creation:||Oct 1992|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:727. 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: ()The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.