High Skilled Immigration Policy and Union Wage Setting

Moritz Bonn ()

Volkswirtschaftliche Diskussionsbeiträge from Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht

Abstract: This paper studies the effects of high skilled immigration on employment and net income in the host economy where the market for low skilled labor is distorted by union wage setting and a redistributive unemployment benefit scheme. I show that high skilled immigration can increase as well as decrease low skilled employment depending on how the public budget adjusts to immigration and that the effects on workers' net income levels may vary substantially. I conclude that a Pareto improvement can be achieved if the unemployment benefit level remains unaffected by high skilled immigration.

Keywords: Immigration; Imperfect Labor Markets; Fiscal Redistribution (search for similar items in EconPapers)
JEL-codes: F22 H53 J51 J61 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2011, Revised 2012-08-27
New Economics Papers: this item is included in nep-bec, nep-lab and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:sie:siegen:147-11

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