In Germany, immigrant unemployment is not only higher than native unemployment; it also reacts more to changes in the situation on the labor market. Decomposing the gap between native and immigrant unemployment into a baseline and a labor-market situation component, I find that the unemployment...

Many countries pursue an immigration policy that is targeted at attracting high skilled workers. Borjas (1995) has shown that assuming perfect labor markets immigration leads to a welfare gain for the native population, the so-called immigration surplus. Thus, as the labor market for high...