Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104663
Authors: 
Battisti, Michele
Felbermayr, Gabriel
Peri, Giovanni
Poutvaara, Panu
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8574
Abstract: 
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 search frictions. These gains tend to outweigh the welfare costs of redistribution. Immigration has increased native welfare in almost all countries. Both high-skilled and low-skilled natives benefit in two thirds of countries, contrary to what models without search frictions predict. Average total gains from immigration are 1.25% and 1.00% for high and low skilled natives, respectively.
Subjects: 
immigration
search
labor market frictions
fiscal redistribution
cross-country comparisons
JEL: 
F22
J61
J64
Document Type: 
Working Paper

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