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Migration, the Quality of the Labour Force and Economic Inequality

  • Martin Kahanec
  • Klaus F. Zimmermann

Mobility of workers involves flows of labour, human capital and other production factors and thus contributes to a more efficient allocation of resources. Besides these effects on allocative efficiency, migrant flows affect relative wages and also change the international and national distribution of skills and thereby equality in the receiving society. This paper suggests that skilled immigration promotes economic equality in advanced economies under standard conditions. The context is theoretically explained in a core model and empirically documented using unique data from the WIID database and OECD.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 781.

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Length: 27 p.
Date of creation: 2008
Date of revision:
Handle: RePEc:diw:diwwpp:dp781
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