Unemployment and the Immigration Surplus
Within a small open economy fair wage model with unemployment of unskilled workers, we show that exogenous unskilled immigration increases the welfare of natives if the elasticity of the inverse labour demands exceeds a positive finite threshold. This threshold depends positively on the displacement ratio of native workers by immigrants and negatively on the share of immigrants in the unskilled workforce.
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- Gabriel J. Felbermayr & Wilhelm Kohler, 2007.
"Immigration And Native Welfare,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 731-760, 08.
- Gabriel J. Felbermayr & Wilhelm Kohler, 2004. "Immigration and native welfare," Economics working papers 2004-01, Department of Economics, Johannes Kepler University Linz, Austria.
- Felbermayr, Gabriel & Kohler, Wilhelm K., 2007. "Immigration and native welfare," Munich Reprints in Economics 20608, University of Munich, Department of Economics.
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- George J. Borjas, 1994.
"The Economic Benefits from Immigration,"
NBER Working Papers
4955, National Bureau of Economic Research, Inc.
- Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
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