Restrictive immigration policy in Germany: Pains and gains foregone?
Many European countries restrict immigration from new EU member countries. The rationale is to avoid adverse wage and employment effects. We quantify these effects for Germany. Following Borjas (in Q J Econ CXVIII(4):1335-1374, 2003), we estimate a structural model of labor demand, based on elasticities of substitution between workers with different experience levels and education. We allow for unemployment which we model in a price-wage-setting framework. Simulating a counterfactual scenario without restrictions for migration from new EU members countries in Germany, we find moderate negative wage and employment effects for incumbent foreigners, but positive effects for natives. Our results indicate that for the native German population as a whole the immigration restrictions are not welfare enhancing.
Year of publication: |
2010
|
---|---|
Authors: | Felbermayr, Gabriel ; Geis, Wido ; Kohler, Wilhelm K. |
Institutions: | Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München |
Saved in:
Saved in favorites
Similar items by person
-
Can international migration ever be made a pareto improvement?
Felbermayr, Gabriel,
-
Modelling the extensive margin of world trade: New evidence on GATT and WTO membership
Felbermayr, Gabriel, (2010)
-
WTO membership and the extensive margin of world trade: New evidence
Felbermayr, Gabriel, (2009)
- More ...