Immigration, Search, and Redistribution: A Quantitative Assessment of Native Welfare

Michele Battisti (), Gabriel Felbermayr, Giovanni Peri and Panu Poutvaara

No 8574, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of search frictions. These gains tend to outweigh the welfare costs of redistribution. Immigration has increased native welfare in almost all countries. Both high-skilled and low-skilled natives benefit in two thirds of countries, contrary to what models without search frictions predict. Average total gains from immigration are 1.25% and 1.00% for high and low skilled natives, respectively.

Keywords: search; labor market frictions; fiscal redistribution; immigration; cross-country comparisons (search for similar items in EconPapers)
JEL-codes: F22 J61 J64 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2014-10
New Economics Papers: this item is included in nep-dem and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

Published - published in: Journal of the European Economic Association, 2018,16 (4), 1137 - 1188

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Related works:
Journal Article: Immigration, Search and Redistribution: A Quantitative Assessment of Native Welfare (2018)
Working Paper: Immigration, Search, and Redistribution: A Quantitative Assessment of Native Welfare (2014)
Working Paper: Immigration, Search, and Redistribution: A Quantitative Assessment of Native Welfare (2014)
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