Arbeitspapier

Welfare Effects of Immigration in a Dual Labor Market

The paper analyses the welfare effects of immigration when some sectors of the economy are characterized by wage bargaining between unions and employers. We show that immigration is unambiguously beneficial if the wage elasticity of labor demand in the competitive sectors is smaller than in the unionised sectors. In the opposite case, the welfare effect of immigrat ion is ambiguous; little immigration then reduces the native population's welfare, whereas large scale immigration tends to enhance welfare.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 215

Classification
Wirtschaft
Subject
Immigration policy
trade unions
welfare

Event
Geistige Schöpfung
(who)
Fuest, Clemens
Thum, Marcel
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
1999

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Fuest, Clemens
  • Thum, Marcel
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 1999

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