Logo Logo
Switch Language to German

Battisti, Michele; Felbermayr, Gabriel; Peri, Giovanni and Poutvaara, Panu (1. August 2018): Immigration, Search and Redistribution. A Quantitative Assessment of Native Welfare. In: Journal of the European Economic Association, Vol. 16, No. 4: pp. 1137-1188

Full text not available from 'Open Access LMU'.


What are the welfare effects of immigration on low-skilled and high-skilled natives? To address this question, we develop a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a welfare state that redistributes income through unemployment benefits and the provision of public goods. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of search frictions. The resulting gains tend to outweigh the welfare costs of redistribution. Immigration has increased native welfare in almost all countries. In two-thirds of countries, both high- and low-skilled natives have benefited from the presence of immigrants, contrary to what models without search frictions or redistribution predict. Average total welfare gains from migration are 1.25% and 1.00% for high- and low-skilled natives, respectively.

Actions (login required)

View Item View Item