Immigration and native welfare

Felbermayr, Gabriel und Kohler, Wilhelm K. (2004): Immigration and native welfare. Working Paper / Department of Economics, Johannes Kepler University of Linz,

Abstract

We unify two approaches towards identifying native welfare effects of immigration, one emphasizing the immigration surplus (Borjas, 1995,1999), the other identifying a welfare loss due to terms-of-trade effects (Davis \& Weinstein, 2002). We decompose the native welfare effect of immigration into the standard complementarity effect, augmented by a Stolper-Samuelson effect, and a terms-of-trade effect. Using a structural model with three skill-classes we derive propositions on the wage and native welfare effects of various immigration scenarios. A calibration-based simulation reveals that the size of the inflow and immigrant income repatriation are key determinants of the welfare-ranking of different immigration scenarios.

• Dokumententyp: Paper
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Lehrstühle > CESifo-Professur für Außenwirtschaft
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: F22, F41, J31
• Sprache: Englisch