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A Search-Equilibrium Approach to the Effects of Immigration on Labor Market Outcomes

  • Chassamboulli, Andri
  • Palivos, Theodore

We analyze the impact of the skill-biased immigration influx that took place during the years 2000-2009 in the United States, within a search and matching model that allows for skill heterogeneity, differential search cost between immigrants and natives, capital-skill complementarity and possibly endogenous skill acquisition. Within such a framework, we find that although the skill-biased immigration raised the overall net income to natives, it may have had distributional effects. Specifically, unskilled native workers gained in terms of both employment and wages. Skilled native workers, on the other hand, gained in terms of employment but may have lost in terms of wages. Nevertheless, in one extension of the model, where skilled workers and immigrants are imperfect substitutes, we find that even the skilled wage may have risen.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43297.

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Date of creation: 15 May 2012
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Handle: RePEc:pra:mprapa:43297
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  24. Liu, Xiangbo, 2009. "On the Macroeconomic and Welfare Effects of Illegal Immigration," MPRA Paper 15469, University Library of Munich, Germany.
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