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Wage Effects of Labor Migration with International Capital Mobility

Author

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  • Ruist, Joakim

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Bigsten, Arne

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Wage effects of immigration are investigated in a setting with international capital mobility, which eliminates two-thirds of the native wage-effects of immigration. Without international capital mobility, overall gains from migration in the immigration region are only a small fraction of total losses to native workers, but with perfect international capital adjustment, overall gains are larger than total losses to native workers. Two alternative tax policies to eliminate the negative wage-effects of immigration on low skilled native workers are evaluated.

Suggested Citation

  • Ruist, Joakim & Bigsten, Arne, 2010. "Wage Effects of Labor Migration with International Capital Mobility," Working Papers in Economics 464, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0464
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    References listed on IDEAS

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    1. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 35-78.
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    12. Moses, Jonathon W. & Letnes, Bjorn, 2004. "The Economic Costs to International Labor Restrictions: Revisiting the Empirical Discussion," World Development, Elsevier, vol. 32(10), pages 1609-1626, October.
    13. Samuel de Abreu Pessoa & Silvia Matos Pessoa & Rafael Rob, 2005. "Elasticity of Substitution between Capital and Labor and its applications to growth and development," PIER Working Paper Archive 05-012, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
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    Cited by:

    1. Eric Strobl & Marie-Anne Valfort, 2015. "The Effect of Weather-Induced Internal Migration on Local Labor Markets. Evidence from Uganda," World Bank Economic Review, World Bank Group, vol. 29(2), pages 385-412.
    2. repec:ipg:wpaper:2014-460 is not listed on IDEAS

    More about this item

    Keywords

    International labor migration; wage effects;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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