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Immigration and native welfare

Gabriel Felbermayr () and Wilhelm Kohler ()
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Wilhelm Kohler: Department of Economics, Johannes Kepler University Linz, Austria, http://www.econ.jku.at/

No 2004-01, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: We unify two approaches towards identifying native welfare effects of immigration, one emphasizing the immigration surplus (Borjas, 1995,1999), the other identifying a welfare loss due to terms-of-trade effects (Davis & Weinstein, 2002). We decompose the native welfare effect of immigration into the standard complementarity effect, augmented by a Stolper-Samuelson effect, and a terms-of-trade effect. Using a structural model with three skill-classes we derive propositions on the wage and native welfare effects of various immigration scenarios. A calibration-based simulation reveals that the size of the inflow and immigrant income repatriation are key determinants of the welfare-ranking of different immigration scenarios.

Keywords: international migration; factor movements; international trade; non-tradable goods; welfare analysis; wages; general equilibrium; terms-of-trade (search for similar items in EconPapers)
JEL-codes: F22 F41 J31 (search for similar items in EconPapers)
Date: 2004-02
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Related works:
Chapter: Immigration and Native Welfare (2014) Downloads
Journal Article: IMMIGRATION AND NATIVE WELFARE (2007) Downloads
Working Paper: Immigration and native welfare (2007)
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