Unemployment, Technology and the Welfare Effects of Immigration

Kemnitz, Alexander

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URL: https://ub-madoc.bib.uni-mannheim.de/1000
URN: urn:nbn:de:bsz:180-madoc-10001
Document Type: Working paper
Year of publication: 2003
The title of a journal, publication series: Discussion Papers / Institut für Volkswirtschaftslehre und Statistik
Volume: 611
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series: Institut für Volkswirtschaftslehre und Statistik > Discussion Papers
Subject: 330 Economics
Classification: JEL: H53 J5 F22 J65 J61 ,
Subject headings (SWD): Einwanderung , Arbeitslosigkeit , Wohlfahrtsstaat
Abstract: This paper explores the effects of high and low skilled immigration to a host country with unionized low skilled labor and an unemployment insurance scheme. It is shown that the consequences for the labor market and the welfare of natives depend crucially on the host country's production structure. When high and low skilled labor are close substitutes, low skilled immigration boosts employment and can increase total native income. We provide conditions under which low skilled immigration is Pareto-improving. While high skilled immigration has adverse employment effects, the findings reverse for the case of close complementarity.
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