Most empirical studies on wage effects of immigration disregard common labour market institutions like the requirement of job offer before entry to the host country and wage bargaining. The model presented here accounts for these institutions and finds a rationale for the empirical studies’...

While differences in days in unemployment even out after some time after immigration, wage differences between immigrants and natives remain in the long run. Employment assimilation is more or less immediate for labour immigrants, while it takes approximately twenty years for non-labour...