Arbeitspapier

Restrictive immigration policy in Germany: pains and gains foregone?

Many European countries restrict immigration from new EU member countries. The rationale is to avoid adverse wage and employment effects. We quantify these effects for Germany. Following Borjas (2003), we estimate a structural model of labor demand, based on elasticities of substitution between workers with different experience levels and education. We allow for unemployment which we model in a price-wage-setting framework. Simulating a counterfactual scenario without restrictions for migration from new EU members countries, we find moderate negative wage effects, combined with increased unemployment for some types of workers. Wage-setting mitigates wage cuts.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 2316

Classification
Wirtschaft
Labor Economics: General
Subject
migration
labor
Arbeitsnachfrage
Einwanderung
Einwanderungsrecht
Osteuropäer
Lohn
Beschäftigungseffekt
Qualifikation
Deutschland

Event
Geistige Schöpfung
(who)
Felbermayr, Gabriel
Geis, Wido
Kohler, Wilhelm K.
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2008

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Felbermayr, Gabriel
  • Geis, Wido
  • Kohler, Wilhelm K.
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2008

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