Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/48135
Authors: 
Albert, Max
Meckl, Jürgen
Year of Publication: 
2002
Series/Report no.: 
Dresden discussion paper in economics 04/02
Abstract: 
We analyze the employment effects of immigration within a model that accounts for several stylized facts of the German labor market. The co-existence of positive wage spans and unemployment is explained by wage rigidities that are simultaneously caused by effciency-wage setting and minimum wages. The observed positive relation between wage spans and minimum wages results from employment shifts from low-wage to high-wage sectors. Employment effects of immigration are opposite to those of a rise in the minimum wage. For plausible parameter values, immigration raises employment of the home labor force even if all immigrants find employment.
Subjects: 
immigration
unemployment
effciency wage
wage drift
wage span
JEL: 
F11
F22
J31
J64
Document Type: 
Working Paper

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