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A Note on the Redistributive Effect of Immigration

Author

Listed:
  • Euwals, Rob

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Roodenburg, Hans

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

In this paper, we study gains and losses that accrue to natives because of immigration. The gain on the aggregated level is called the ‘immigration surplus’, which can be seen as analogous to a consumer surplus. We derive changes in the earnings of native owners of production factors by employing a stylized model with capital and two types of labour. We claim that the changes in earnings are larger than reported by previous studies, and we propose a new method to tally them up to the immigration surplus.

Suggested Citation

  • Euwals, Rob & Roodenburg, Hans, 2003. "A Note on the Redistributive Effect of Immigration," IZA Discussion Papers 917, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp917
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    Cited by:

    1. Euwals, Rob & Roodenburg, Hans, 2004. "A note on the redistributive effect of immigration," Economics Letters, Elsevier, vol. 85(2), pages 241-246, November.
    2. Catalina Amuedo-Dorantes & Sara Rica, 2013. "The immigration surplus and the substitutability of immigrant and native labor: evidence from Spain," Empirical Economics, Springer, vol. 44(2), pages 945-958, April.

    More about this item

    Keywords

    economic welfare; wages; immigration; redistribution;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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