We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of...

We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of...

We exploit rules of class formation to identify the causal effect of increasing the number of immigrants in a classroom on natives test scores, keeping class size constant (Pure Composition Effect). We explain why this is a relevant policy parameter although it has been neglected so far. We show...