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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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3560
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2011. "Ethnic Minorities in the European Union: An Overview," Chapters,in: Ethnic Diversity in European Labor Markets, chapter 1 Edward Elgar Publishing.
    2. 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.
    3. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute for the Study of Labor (IZA).
    4. 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.
    5. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2009. "Lessons from Migration after EU Enlargement," IZA Discussion Papers 4230, Institute for the Study of Labor (IZA).
    6. Kahanec, Martin & Králiková, Renáta, 2011. "Pulls of International Student Mobility," IZA Discussion Papers 6233, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    minority; ethnicity; inequality; income distribution; human capital; skill allocation; migration; Gini-coefficient;

    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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