IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Labor market integration of migrants: Hidden costs and benefits in two-tier welfare states

  • König, Jan
  • Skupnik, Christoph
Registered author(s):

    We apply a monopoly trade union model and analyze employment, wage and budgetary effects of (i) an inflow of migrant workers and (ii) an increase in the labor market participation rate of migrants. Per assumption, natives and migrants solely differ with respect to the level of benefit claims in a two-tier welfare system. Furthermore, the labor effects are studied under two types of union behavior. Analyzing the ceteris paribus labor market effects, we identify hidden costs and benefits of intensified integration that emerge from the design of the welfare program. We support previous findings in case of an inflow of migrant workers. More interesting, though, it is shown that a larger share of migrants in the workforce increases (decreases) the employment level, if the union represents (does not represent) migrant workers.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://econstor.eu/bitstream/10419/56055/1/688816673.pdf
    Download Restriction: no

    Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2012/5.

    as
    in new window

    Length:
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:zbw:fubsbe:20125
    Contact details of provider: Postal: Garystr. 21, 14195 Berlin (Dahlem)
    Phone: (030) 838 2272
    Fax: (030) 838 2129
    Web page: http://www.wiwiss.fu-berlin.de/en/index.htmlEmail:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Fuest, Clemens & Thum, Marcel, 2000. "Welfare effects of immigration in a dual labor market," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 551-563, September.
    2. Giovanni Facchini & Anna Maria Mayda, 2007. "Does the Welfare State Affect Individual Attitudes towards Immigrants? Evidence Across Countries," Economics Discussion Papers 644, University of Essex, Department of Economics.
    3. Andersen, Torben M., 2002. "International Integration, Risk and the Welfare State," IZA Discussion Papers 456, Institute for the Study of Labor (IZA).
    4. Rodriguez, Carlos Alfredo, 1975. "On the Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 83(5), pages 1065-72, October.
    5. Berry, R Albert & Soligo, Ronald, 1969. "Some Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 77(5), pages 778-94, Sept./Oct.
    6. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    7. Martin Kahanec & Anna Myung-Hee Kim & Klaus F. Zimmermann, 2013. "Pitfalls of immigrant inclusion into the European welfare state," International Journal of Manpower, Emerald Group Publishing, vol. 34(1), pages 39-55, January.
    8. Anzelika Zaiceva & Klaus F. Zimmermann, 2008. "Scale, diversity, and determinants of�labour migration in Europe," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 428-452, Autumn.
    9. Bodvarsson, Örn B. & Lewer, Joshua J. & Van den Berg, Hendrik, 2007. "Measuring Immigration's Effects on Labor Demand: A Reexamination of the Mariel Boatlift," IZA Discussion Papers 2919, Institute for the Study of Labor (IZA).
    10. Kreiner, Claus Thustrup & Whitta-Jacobsen, Hans Jorgen, 2002. "Duration dependent unemployment benefits in trade union theory," European Economic Review, Elsevier, vol. 46(7), pages 1229-1251, July.
    11. Sinn, Hans-Werner, 2002. "Der neue Systemwettbewerb," Munich Reprints in Economics 19830, University of Munich, Department of Economics.
    12. Razin, A. & Sadka, E., 1999. "Unskilled Migration: a Burden or a Boon for the Welfare State?," Papers 8-99, Tel Aviv.
    13. Torben M. Andersen, 2003. "European integration and the welfare state," Journal of Population Economics, Springer, vol. 16(1), pages 1-19, 02.
    14. Wildasin, David E, 1995. " Factor Mobility, Risk and Redistribution in the Welfare State," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 527-46, December.
    15. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
    16. repec:cup:cbooks:9780521464673 is not listed on IDEAS
    17. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
    18. Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 160-93.
    19. Zimmermann, Klaus F., 1998. "Immigration und Arbeitsmarkt: Eine oekonomische Perspektive," IZA Discussion Papers 7, Institute for the Study of Labor (IZA).
    20. Alexander Kemnitz, 2003. "Immigration, Unemployment and Pensions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 31-48, 03.
    21. Alexander Kemnitz, 2004. "Unemployment Insurance, Immigrants' Skills, and Native Earnings," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(1), pages 111-, April.
    22. Brecher, Richard A. & Choudhri, Ehsan U., 1987. "International migration versus foreign investment in the presence of unemployment," Journal of International Economics, Elsevier, vol. 23(3-4), pages 329-342, November.
    23. Stark, Oded & Micevska, Maja & Mycielski, Jerzy, 2009. "Relative poverty as a determinant of migration: Evidence from Poland," Economics Letters, Elsevier, vol. 103(3), pages 119-122, June.
    24. Hans-Werner Sinn, 2002. "Der neue Systemwettbewerb," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 3(4), pages 391-407, November.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:zbw:fubsbe:20125. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.