First, we spell out a political-economy model, based on segmented labor markets, which explains why a guest-worker system is preferred to a non-discriminatory immigration regime and why measures to improve the integration of low-skill immigrants tend to be opposed subsequently. The model also...

In this paper, we provide new explanations for the puzzling findings in the literature that migrants do not decrease natives' wages, and that skilled immigration can actually increase them. We develop a model with regional labor markets and heterogeneous firms in which workers of different skill...

In this paper, we provide new explanations for the puzzling findings in the literature that migrants do not decrease natives' wages, and that skilled immigration can actually increase them. We develop a model with regional labor markets and heterogeneous firms in which workers of different skill...

First, we spell out a political-economy model, based on segmented labor markets, which explains why a guest-worker system is preferred to a non-discriminatory immigration regime and why measures to improve the integration of low-skill immigrants tend to be opposed subsequently. The model also...

The issue of the free movement of persons occupies center stage in the negotiations on EU enlargement. Opinion polls and household surveys reveal that a majority of EU citizens are fearful of the consequences of the free movement of persons. Influenced by these surveys, the EU Commission and...