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

Andri Chassamboulli () and Theodore Palivos

University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics

Abstract: 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.

Keywords: Immigration; Search; Unemployment; Skill-heterogeneity (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mig
Date: 2012-12
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http://papers.econ.ucy.ac.cy/RePEc/papers/17-12.pdf (application/pdf)

Related works:
Journal Article: A SEARCH‐EQUILIBRIUM APPROACH TO THE EFFECTS OF IMMIGRATION ON LABOR MARKET OUTCOMES (2014) Downloads
Working Paper: A Search-Equilibrium Approach to the Effects of Immigration on Labor Market Outcomes (2012) Downloads
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