The effects of high skilled immigration in a dual labour market with union wage setting and fiscal redistribution

Arbeitspapier

We study the effects of high skilled immigration on employment and net income in the receiving economy where the market for low skilled labour is distorted by union wage setting and a redistributive unemployment benefit scheme. Based on the empirical fact that high and low skilled workers are close albeit imperfect substitutes, we show that high skilled immigration can either be beneficial or harmful, both in terms of employment and net income. More precisely, we conclude that a Pareto improvement can be achieved if the unemployment benifit level remains unaffected by high skilled immigration whereas an overall loss in net income cannot be ruled out if we suggest unemployment benefits to be funded by an exogenous egalitarian tax rate.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Volkswirtschaftliche Diskussionsbeiträge ; No. 147-11

Classification and Topics

• Classification: Wirtschaft ; International Migration ; National Government Expenditures and Welfare Programs ; Trade Unions: Objectives, Structure, and Effects ; Geographic Labor Mobility; Immigrant Workers
• Subject: Immigration ; Imperfect Labour Markets ; Fiscal Redistribution ; Einwanderung ; Hochqualifizierte Arbeitskräfte ; Beschäftigungseffekt ; Einkommen ; Lohnpolitik ; Ungelernte Arbeitskräfte ; Arbeitslosenversicherung ; Einkommensumverteilung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bonn, Moritz
• Event: Veröffentlichung
• (who): Universität Siegen, Fakultät III, Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht
• (where): Siegen
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/57262
• Last update: 10.03.2025, 11:42 AM CET