Title
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Simulating the impact of immigration on wages and unemployment
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Author
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Abstract
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This paper looks at the e¤ects of migration in labour market models that allow for un- employment in equilibrium. We include three di¤erent models: a competitive labour market model, a wage bargaining model and an e¢ ciency wage model. We simulate a one-percentage point increase in the labour force due to migration. Simulation results show that e¤ects of migration do not di¤er that much between di¤erent labour market models: wages decrease with 0.3% to 0.4% and the unemployment rate increases with at most 0.24 percentage points. Migration also positively a¤ects public
nancing by increasing governments budget with 0.3% to 0.5%. |
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Language
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English
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Source (series)
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Research paper / UA, Faculty of Applied Economics , 2005:36
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Publication
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Antwerpen
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UA
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2005
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Volume/pages
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20 p.
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Full text (open access)
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