Chassamboulli, Andri and Palivos, Theodore (2010): "Give me your Tired, your Poor," so I can Prosper: Immigration in Search Equilibrium.
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We analyze the impact of immigration on the host country within a search and matching model that allows for skill heterogeneity, endogenous skill acquisition, differential search cost between immigrants and natives, capital-skill complementarity and different degree of substitutability between unskilled natives and immigrants. Within such a framework, we find that although immigration raises the overall welfare,it may have distributional effects. Specifically, skilled workers gain in terms of both employment and wages. Unskilled workers, on the other hand, gain in terms of employment but may lose in terms of wages. Nevertheless, in one version of the model, where unskilled workers and immigrants are imperfect substitutes, we find that even the unskilled wage may rise. These results accommodate conflicting empirical findings.
|Item Type:||MPRA Paper|
|Original Title:||"Give me your Tired, your Poor," so I can Prosper: Immigration in Search Equilibrium|
|Keywords:||Search; Unemployment; Immigration; Skill-heterogeneity|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
|Depositing User:||Theodore Palivos|
|Date Deposited:||23. Jul 2011 14:11|
|Last Modified:||12. Feb 2013 22:06|
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