Winners and losers of immigration

Davide Fiaschi and Cristina Tealdi

Papers from arXiv.org

Abstract: We study the impact of low-skilled immigration in a general equilibrium search and matching model, with heterogeneous workers producing intermediate goods, which are used in the production of two final goods. In addition to complementarity/substitution between native and non-native workers, we explore how immigration affects the relative prices of final goods and wages. An application to Italy reveals a positive contribution of immigrants to GDP, public revenues, and the per capita provision of public goods. Employers and employees in the high-skilled-intensive market are winners, while losers are employers in the low-skilled-intensive market. The effects on low-skilled employees are instead inconclusive.

Date: 2021-07, Revised 2024-02
New Economics Papers: this item is included in nep-dge and nep-int
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http://arxiv.org/pdf/2107.06544 Latest version (application/pdf)

Related works:
Working Paper: Winners and Losers of Immigration (2020)
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