The inclusion of migrants into the labour market is considered a key issue in order to achieve better overall integration. However, compared to the German population, unemployment rates are around twice as high among foreigners. One important knob to improve access to the labour market lies in...

We adopt a general equilibrium approach in order to measure the effects of recent immigration on the Western German labor market, looking at both wage and employment effects. Using the Regional File of the IAB Employment Subsample for the period 1987-2001, we find that the substantial...