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Immigration, Unemployment and Welfare


  • CHESNEY, Marc
  • HAZARI, Bharat R.

    (School of Economics, Faculty of Business and Law)

  • SGRO, Pasquale M.

    (School of Economics, Faculty of Business and Law)


The recent flows of immigrants to many countries has been categorised by both legal/illegal migrants. Such migration flows have occurred despite the presence of domestic unemployment of various categories of labour. It has also been observed that migration has lowered the reward of unskilled workers. These problems are analysed on the basis of two alternative models: (i) where skilled workers and (ii) where unskilled workers are unemployed. It is shown that migration may raise both skilled/unskilled employment and welfare under plausible factor intensity conditions. More importantly, illegal migration may help in lowering the relative price of the non-traded good while the impact of migration on structural adjustment is ambiguous.

Suggested Citation

  • CHESNEY, Marc & HAZARI, Bharat R. & SGRO, Pasquale M., 1999. "Immigration, Unemployment and Welfare," Les Cahiers de Recherche 673, HEC Paris.
  • Handle: RePEc:ebg:heccah:0673

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    References listed on IDEAS

    1. Rodriguez, Carlos Alfredo, 1975. "On the Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 83(5), pages 1065-1072, October.
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    More about this item


    immigration; unemployment;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration


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