Restrictive immigration policy in Germany: pains and gains foregone?

Gabriel Felbermayr, Wido Geis-Thöne and Wilhelm K. Kohler

No 2008,18, Discussion Paper Series 1: Economic Studies from Deutsche Bundesbank

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: wages; migration (search for similar items in EconPapers)
JEL-codes: J48 J61 J68 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-eec, nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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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)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp1:7443

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