Restrictive immigration policy in Germany: pains and gains foregone?

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 (in Q J Econ CXVIII(4):1335–1374, 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 in Germany, we find moderate negative wage and employment effects for incumbent foreigners, but positive effects for natives. Our results indicate that for the native German population as a whole the immigration restrictions are not welfare enhancing

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch
Notes
Postprint
begutachtet (peer reviewed)
In: Review of World Economics ; 146 (2010) 1 ; 1-21

Classification
Wirtschaft

Event
Veröffentlichung
(where)
Mannheim
(when)
2010
Creator

DOI
10.1007/s10290-009-0044-z
URN
urn:nbn:de:0168-ssoar-214091
Rights
Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
25.03.2025, 1:48 PM CET

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Associated

Time of origin

  • 2010

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