Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73252
Authors: 
Felbermayr, Gabriel J.
Kohler, Wilhelm
Year of Publication: 
2004
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 0401
Abstract: 
We unify two approaches towards identifying native welfare effects of immigration, one emphasizing the immigration surplus (Borjas, 1995,1999), the other identifying a welfare loss due to terms-of-trade effects (Davis & Weinstein, 2002). We decompose the native welfare effect of immigration into the standard complementarity effect, augmented by a Stolper-Samuelson effect, and a terms-of-trade effect. Using a structural model with three skill-classes we derive propositions on the wage and native welfare effects of various immigration scenarios. A calibration-based simulation reveals that the size of the inflow and immigrant income repatriation are key determinants of the welfare-ranking of different immigration scenarios.
Subjects: 
international migration
factor movements
international trade
non-tradable goods
welfare analysis
wages
general equilibrium
terms-of-trade
JEL: 
F22
F41
J31
Document Type: 
Working Paper

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