Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74740
Authors: 
Lumpe, Christian
Weigert, Benjamin
Year of Publication: 
2010
Series/Report no.: 
Arbeitspapier, Sachverständigenrat zur Begutachtung der Gesamtwirtschaftlichen Entwicklung 01/2010
Abstract: 
In this paper we analyse the effect of immigration on the labour market prospects for different skill groups among natives. We develop a model of endogenous labour supply in which immigration affects educational decisions of natives. We argue that the distributional consequences of immigration with respect to native between-skill-group inequality are ambiguous in general and crucially depend on the host country's level of educational attainment. We show that this result is robust irrespective of labour market institutions as, e.g., with a rigid wage regime featuring unemployment. Additionally, the model is applied to assess the impact on within-skill-group wage inequality.
JEL: 
F22
J31
Document Type: 
Working Paper

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