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 against the available empirical evidence. The...

Upon arrival to a new country, many immigrants face job downgrading, a phenomenon describing workers being in jobs far below where they would be assigned based on their skills. Downgrading leads to immigrants receiving lower returns to the same skills than natives. The level of downgrading could...