Immigration, education and labour market institutions
Immigration, education and labour market institutions
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Date
2004
Authors
Lumpe, Christian
Weigert, Benjamin
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Diskussionspapiere der DFG-Forschergruppe Heterogene Arbeit; 04/14
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Abstract
In this paper we analyse the effect of immigration on the labour market conditions for different skill groups. We develop a model of endogenous labour supply in which immigration affects educational decisions. We show how the skill premium changes with immigration of low skilled labour under flexible and rigid wages. Depending on the labour market institutions, immigration of low skilled labour is absorbed either by an increased skill premium or increased unemployment of low skilled labour. Thus, we extend the existing explanations of changing skill premia and unemployment of low skilled labour experienced during the last decades. Our model gives a rationale for the debate on immigration of high skilled workers as a way to reduce unemployment of low skilled workers in highly rigid labour markets.
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Subject (DDC)
330 Economics
Keywords
Humankapitalprämie,Immigration,Skill premium,Labour supply
Conference
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LUMPE, Christian, Benjamin WEIGERT, 2004. Immigration, education and labour market institutionsBibTex
@techreport{Lumpe2004Immig-11761,
year={2004},
series={Diskussionspapiere der DFG-Forschergruppe Heterogene Arbeit},
title={Immigration, education and labour market institutions},
number={04/14},
author={Lumpe, Christian and Weigert, Benjamin}
}
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