Immigration and two-component unemployment

We analyze the employment effects of immigration within a model that accounts for several stylized facts of the German labor market. The co-existence of positive wage spans and unemployment is explained by wage rigidities that are simultaneously caused by effciency-wage setting and minimum wages. The observed positive relation between wage spans and minimum wages results from employment shifts from low-wage to high-wage sectors. Employment effects of immigration are opposite to those of a rise in the minimum wage. For plausible parameter values, immigration raises employment of the home labor force even if all immigrants find employment.

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Year of publication:	2002
Authors:	Albert, Max ; Meckl, Jürgen
Publisher:	Dresden : Technische Universität Dresden, Fakultät Wirtschaftswissenschaften
Subject:	Einwanderung \| Beschäftigungseffekt \| Theorie der Arbeitslosigkeit \| Effizienzlohn \| Lohnrigidität \| Mehr-Sektoren-Modell \| Lohndrift \| Theorie \| immigration \| unemployment \| effciency wage \| wage drift \| wage span

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Series:	Dresden Discussion Paper Series in Economics ; 04/02
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	822195437 [GVK] hdl:10419/48135 [Handle] RePEc:zbw:tuddps:0402 [RePEc]
Classification:	F11 - Neoclassical Models of Trade ; F22 - International Migration ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	EconStor

Persistent link: https://www.econbiz.de/10010305438