the labor market. Its impact on employment, wages and wealth depends crucially on the design of immigration policy …Based on the current European discussion about immigration policy, this paper gives an overview of central economic … consequences of immigration for a host country's labor market. The most important theoretical arguments are presented and evaluated …

earned wages. We show how the analysis has to be modified if this fact is taken into account and compare our findings for the …

. We solve (i) for the Markov perfect equilibria with no commitment, under the assumption that the union chooses wages each … entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the … employment and wages only in the no-commitment case, i.e., the higher the relevance of adjustment costs the higher the wage and …

of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …

different technologies that imperfectly compete in wages to attract these workers. Once employed, each worker bears an education … subsidy either the education cost or wages and compare them. We found that the first best allocation can only be implemented … firms and show that, in terms of welfare, subsidizing education costs or wages is strictly equivalent. …