Immigration, Search, and Redistribution: A Quantitative Assessment of Native Welfare

Arbeitspapier

We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of search frictions. These gains tend to outweigh the welfare costs of redistribution. Immigration has increased native welfare in almost all countries. Both high-skilled and low-skilled natives benefit in two thirds of countries, contrary to what models without search frictions predict. Average total gains from immigration are 1.25% and 1.00% for high and low skilled natives, respectively.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5022

Classification and Topics

• Classification: Wirtschaft ; International Migration ; Geographic Labor Mobility; Immigrant Workers ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: immigration ; search ; labor market frictions ; fiscal redistribution ; cross-country comparisons

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Battisti, Michele ; Felbermayr, Gabriel J. ; Peri, Giovanni ; Poutvaara, Panu
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/103106
• Last update: 10.03.2025, 11:44 AM CET