Arbeitspapier

Optimal quota for sector-specific immigration

Sectoral labor supply shortage is a cause of concern in many OECD countries and has raised support for immigration as a potential remedy. In this paper, we derive a general equilibrium model with overlapping generations, where natives require a compensating wage differential for working in one sector rather than in another. We identify price and wage effects of immigration on three different groups of natives: the young working in one of two sectors and the old. We determine the outcome of a majority vote on immigration into a given sector as well as the social optimum. The main findings are that i) the old determine the majority voting outcome of positive immigration into both sectors, if natives are not mobile across sectors, ii) the young determine the majority voting outcome of zero immigration into both sectors, if natives are mobile across sectors, iii) the social optimum is smaller than or equal to the majority voting outcome, and iv) sector-specific immigration is not always a substitute for native mobility across sectors.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 0807

Klassifikation
Wirtschaft
International Migration
Wage Level and Structure; Wage Differentials
Geographic Labor Mobility; Immigrant Workers
Thema
immigration
political economy
welfare
sectoral mobility
Einwanderung
Migrationspolitik
Arbeitsmobilität
Branche
Allgemeines Gleichgewicht
Pareto-Optimum
Overlapping Generations
Theorie

Ereignis
Geistige Schöpfung
(wer)
Mayr, Karin
Ereignis
Veröffentlichung
(wer)
Johannes Kepler University of Linz, Department of Economics
(wo)
Linz
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Mayr, Karin
  • Johannes Kepler University of Linz, Department of Economics

Entstanden

  • 2008

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