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Migration, the Quality of the Labour Force and Economic Inequality

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  • Kahanec, Martin

    (Central European University)

  • Zimmermann, Klaus F.

    (University of Bonn)

Abstract

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.

Suggested Citation

  • Kahanec, Martin & Zimmermann, Klaus F., 2008. "Migration, the Quality of the Labour Force and Economic Inequality," IZA Discussion Papers 3560, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3560
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    Cited by:

    1. Martin Kahanec & Renáta Králiková, 2012. "Higher Education Policy and Migration: The Role of International Student Mobility," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(4), pages 20-27, 02.
    2. Graţiela Georgiana Noja & Simona Mirela Cristea & Atila Yüksel & Ciprian Pânzaru & Raluca Mihaela Drăcea, 2018. "Migrants’ Role in Enhancing the Economic Development of Host Countries: Empirical Evidence from Europe," Sustainability, MDPI, vol. 10(3), pages 1-32, March.
    3. Isaac Ehrlich & Jinyoung Kim, 2015. "Immigration, Human Capital Formation, and Endogenous Economic Growth," Journal of Human Capital, University of Chicago Press, vol. 9(4), pages 518-563.
    4. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute of Labor Economics (IZA).
    5. Mitrică, Bianca & Damian, Nicoleta & Grigorescu, Ines & Mocanu, Irena & Dumitraşcu, Monica & Persu, Mihaela, 2022. "Out-migration and social and technological marginalization in Romania. Regional disparities," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    6. Mirela CRISTEA & Daniela Emanuela DĂNĂCICĂ & Graţiela Georgiana NOJA, 2021. "Emigration Decision and the Migration Profile of the Unemployed: A Case Study on Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 94-111, June.
    7. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2011. "Ethnic Minorities in the European Union: An Overview," Chapters, in: Martin Kahanec & Klaus F. Zimmermann (ed.), Ethnic Diversity in European Labor Markets, chapter 1, Edward Elgar Publishing.
    8. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2009. "Lessons from Migration after EU Enlargement," IZA Discussion Papers 4230, Institute of Labor Economics (IZA).
    9. repec:ces:ifodic:v:9:y:2012:i:4:p:17567576 is not listed on IDEAS
    10. Kahanec, Martin & Králiková, Renáta, 2011. "Pulls of International Student Mobility," IZA Discussion Papers 6233, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    ethnicity; inequality; income distribution; minority; human capital; skill allocation; migration; Gini-coefficient;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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