Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28330
Authors: 
Brücker, Herbert
Jahn, Elke J.
Year of Publication: 
2009
Series/Report no.: 
Kiel Working Paper 1502
Abstract: 
This paper employs a wage-setting approach to analyze the labor market effects of immigration into Germany. The wage-setting framework relies on the assumption that wages tend to decline with the unemployment rate, albeit imperfectly. This enables us to consider labor market rigidities, which are particularly relevant in Europe. We find that the elasticity of the wage-setting curve is particularly high for young and well-educated workers. The labor market effects of immigration are moderate: a 1 percent increase in the German labor force through immigration increases the unemployment rate by less than 0.1 percentage points and reduces wages by 0.1 percent.
Subjects: 
Migration
wage-setting
labor markets
panel data
JEL: 
F22
J31
J61
Document Type: 
Working Paper

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