Arbeitspapier

Migration and the wage curve: a structural approach to measure the wage and employment effects of migration

Based on a wage curve approach we examine the labor market effects of migration in Germany. The wage curve relies on the assumption that wages respond to a change in the unemployment rate, albeit imperfectly. This allows one to derive the wage and employment effects of migration simultaneously in a general equilibrium framework. For the empirical analysis we employ the IABS, a two percent sample of the German labor force. We find that the elasticity of the wage curve is particularly high for young workers and workers with a university degree, while it is low for older workers and workers with a vocational degree. The wage and employment effects of migration are moderate: a 1 percent increase in the German labor force through immigration increases the aggregate unemployment rate by less than 0.1 percentage points and reduces average wages by less 0.1 percent. While native workers benefit from increased wages and lower unemployment, foreign workers are adversely affected.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3423

Klassifikation
Wirtschaft
International Migration
Thema
Migration
wage curve
labor demand
panel data
Einwanderung
Migranten
Lohnkurve
Lohnstruktur
Arbeitsnachfrage
Arbeitslosigkeit
Panel
Deutschland

Ereignis
Geistige Schöpfung
(wer)
Brücker, Herbert
Jahn, Elke J.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2008

Handle
URN
urn:nbn:de:101:1-2008040189
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Brücker, Herbert
  • Jahn, Elke J.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2008

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