Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168039
Authors: 
Cords, Dario
Year of Publication: 
2017
Series/Report no.: 
Hohenheim Discussion Papers in Business, Economics and Social Sciences 20-2017
Abstract: 
In recent years, Germany and other European countries face the strongest immigration flow in their history. Experts unanimously agree that one of the core factors of a successful social integration is the labor market participation of the new arrivals. This paper investigates the impact of low-skilled immigration on a unionized economy with labor market frictions. It especially examines how immigration affects the technology choice of firms and, thereby, the technological alignment of the host country. The labor market is characterized by heterogeneity on both sides of the market. Within this framework, it can be shown that low-skilled immigration encourages firms to invest more in a basic technology, which leads to a deterioration of the technology level in the whole economy. It can be further shown that policies, which improve the access of already existing low-skilled immigrants to the labor market counteract the effect that is triggered by an increase in low-skilled immigration.
Subjects: 
Immigration
Technology Choice
Search and Matching
Labor Unions
Skillheterogeneity
JEL: 
F22
J24
J31
J51
J61
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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