Arbeitspapier

Labor market integration of migrants: Hidden costs and benefits in two-tier welfare states

We apply a monopoly trade union model and analyze employment, wage and budgetary effects of (i) an inflow of migrant workers and (ii) an increase in the labor market participation rate of migrants. Per assumption, natives and migrants solely differ with respect to the level of benefit claims in a two-tier welfare system. Furthermore, the labor effects are studied under two types of union behavior. Analyzing the ceteris paribus labor market effects, we identify hidden costs and benefits of intensified integration that emerge from the design of the welfare program. We support previous findings in case of an inflow of migrant workers. More interesting, though, it is shown that a larger share of migrants in the workforce increases (decreases) the employment level, if the union represents (does not represent) migrant workers.

Language
Englisch

Bibliographic citation
Series: Diskussionsbeiträge ; No. 2012/5

Classification
Wirtschaft
International Migration
National Government Expenditures and Welfare Programs
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Geographic Labor Mobility; Immigrant Workers
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Subject
migration
welfare state
trade union
Migranten
Berufliche Integration
Sozialhilfe
Soziale Integration
Gewerkschaft
Monopol
Lohn
Beschäftigungseffekt
Bevölkerung
Theorie

Event
Geistige Schöpfung
(who)
König, Jan
Skupnik, Christoph
Event
Veröffentlichung
(who)
Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
(where)
Berlin
(when)
2012

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • König, Jan
  • Skupnik, Christoph
  • Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft

Time of origin

  • 2012

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