Unemployment, Technology and the Welfare Effects of Immigration

Alexander Kemnitz

No 611, Discussion Papers from Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre

Abstract: This paper explores the effects of high and low skilled immigration to a host country with unionized low skilled labor and an unemployment insurance scheme. It is shown that the consequences for the labor market and the welfare of natives depend crucially on the host country's production structure. When high and low skilled labor are close substitutes, low skilled immigration boosts employment and can increase total native income. We provide conditions under which low skilled immigration is Pareto-improving. While high skilled immigration has adverse employment effects, the findings reverse for the case of close complementarity.

JEL-codes: F22 H53 J5 J61 J65 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (1)

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