This paper analyses the impact of immigration on the welfare of the native population in an economy that consists of … level. For a given skill endowment of the native population, we show that immigration reduces the welfare of the host … country up to a certain threshold and then increases it with further immigration. For the case of endogenous skill formation …

The paper analyses the welfare effects of immigration when some sectors of the economy are characterized by wage … bargaining between unions and employers. We show that immigration is unambiguously beneficial if the wage elasticity of labor … immigrat ion is ambiguous; little immigration then reduces the native population's welfare, whereas large scale immigration …