Restrictive Immigration Policy in Germany: Pains and Gains Foregone?

Gabriel Felbermayr, Wido Geis-Thöne, Wilhelm Kohler and Gabriel J. Felbermayr
Authors registered in the RePEc Author Service: Gabriel J Felbermayr

No 2316, CESifo Working Paper Series from CESifo

Abstract: Many European countries restrict immigration from new EU member countries. The rationale is to avoid adverse wage and employment effects. We quantify these effects for Germany. Following Borjas (2003), we estimate a structural model of labor demand, based on elasticities of substitution between workers with different experience levels and education. We allow for unemployment which we model in a price-wage-setting framework. Simulating a counterfactual scenario without restrictions for migration from new EU members countries, we find moderate negative wage effects, combined with increased unemployment for some types of workers. Wage-setting mitigates wage cuts.

Keywords: migration; labor (search for similar items in EconPapers)
JEL-codes: F20 J01 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp2316.pdf (application/pdf)

Related works:
Chapter: Restrictive Immigration Policy in Germany: Pains and Gains Foregone? (2014)
Journal Article: Restrictive immigration policy in Germany: pains and gains foregone? (2010)
Working Paper: Restrictive immigration policy in Germany: Pains and gains foregone? (2010)
Working Paper: Restrictive immigration policy in Germany: pains and gains foregone? (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2316

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().