Migration, Wages and (un)Employment (original) (raw)
Related papers
The Wage Effects of Immigration and Emigration
2010
In this paper, we simulate the long-run e¤ects of migrant ‡ows on wages of high-skilled and low-skilled non-migrants in a set of countries using an aggregate representation of national economies. We focus on Europe and compare the outcomes for large Western European countries with those of other key destination countries both in the OECD and outside the OECD. Our analysis builds on an improved database of bilateral stocks and net migration ‡ows of immigrants and emigrants by education level for the years 1990 through 2000. We …nd that all European countries experienced a decrease in their average wages and a worsening of their wage inequality because of emigration. Whereas, immigration had nearly equal but opposite e¤ects. These patterns hold true using a range of parameters for our simulations, accounting for the estimates of undocumented immigrants, and correcting for the quality of schooling and/or labor-market downgrading of skills. In terms of economic outcomes, it follows that prevalent public fears in European countries are misplaced; immigration has had a positive average wage e¤ect on native workers. These concerns would be more properly focused on the wage e¤ect of emigration.
Discussion Paper 2010-44 The Wage E¤ects of Immigration and Emigration
2010
In this paper, we simulate the long-run e¤ects of migrant ows on wages of high-skilled and low-skilled non-migrants in a set of countries using an aggre-gate representation of national economies. We focus on Europe and compare the outcomes for large Western European countries with those of other key destination countries both in the OECD and outside the OECD. Our analysis builds on an improved database of bilateral stocks and net migration ows of immigrants and emigrants by education level for the years 1990 through 2000. We nd that all European countries experienced a decrease in their average wages and a worsening of their wage inequality because of emigration. Whereas, immigration had nearly equal but opposite e¤ects. These patterns hold true using a range of parameters for our simulations, accounting for the estimates of undocumented immigrants, and correcting for the quality of schooling and/or labor-market downgrading of skills. In terms of economic outcomes, it follows that p...
Migration and Unemployment are a Complementary Relationship from an Economic Point of View
2024
Migration is a long-term movement of individuals from poor regions to rich areas due to various reasons such as war, disease, famine, and climate change. Since the nineteenth century, immigration has become clearer and can be measured and monitored. National and international organizations have begun developing policies around migration and its impacts. Unemployment is the rate of registered unemployed, and promoting immigration may not be an effective strategy for improving job reconciliation. Migration appears to be necessary to balance regional unemployment differentials by moving unemployed individuals from regions with high unemployment rates to those with somewhat low rates. Entry into labor market programs may act as an alternative to immigration for the unemployed, but the importance of "quality" among immigrants (age, education, human capital, and ability to work) is important, which may lead to improvement in re-employment. There is little research on the economic dynamics of migration, but models of decisions for skilled, regionally mobile workers analyze the stability of the situation for a system enlightened by the new economic geography. With the increasing number and effectiveness of international economic and social institutions, the sensitivity to unemployment increased due to the socioeconomic impacts of unemployment. Anthropologists, sociologists, historians, geographers, and economists closely examine the subject of migration and its effects on economic growth and employment. Immigrants contribute to families meeting basic living needs, such as food, shelter, and poverty alleviation. The money that migrants send back to their home countries supports household financial stability and the ability to invest in businesses, property, and other assets in their home country. However, the rates of access to these applications and their use differ socially, economically, and demographically within local communities, especially in developing societies.
2014
There is a broad consensus in the European industrial relations literature: The enlargement of the single market to Central and Eastern Europe (CEE) is putting wages and working conditions of workers in Western Europe under pressure. By contrast, the socio-economic effects of westward migration on CEE labour markets have not caught so much attention. In this paper, we are proposing an analytical framework for analysing the impact of CEE workers' westward migration on CEE wages and working conditions. In so doing, we try to go beyond a simple supply-demand model of the link between migration and labour markets, which assumes that the massive vote of CEE workers with their feet is triggering an improvement of workers' wages and working conditions in their home countries. Contact: Dr. Sabina Stan: sabina.stan@dcu.ie Dr. Roland Erne : roland.erne@ucd.ie
Effects of Migration in a Basic Labour Market Model
Theoretical Economics Letters, 2019
This paper tackles the textbook message that free migration of labour equalizes real wages between local labour markets, since nominal wages should rise and prices should fall in emigrating localities and vice versa in immigrating localities. Reverse price adjustments should thus help in stabilizing migration. The paper investigates the idea in a basic labour market model with sequential comparative statics, and gets conflicting findings: both decreasing prices in the emigrating end and increasing prices in the immigrating end foster emigration. Furthermore, common wisdom is that, if emigration forces the locality to elevate tax rates, people's voting with feet should foster emigration. This paper shows that this is true only with notable tax increases. In the other end, induced emigration appears if the initially immigrating locality is forced to increase its taxes, even modestly.
The impact of international migration on real wages
Journal of Development Economics, 1989
This paper examines the issue of how emigration alters real wages in the source country. The analysis is carried out first using the two-class framework developed by Rivera-Batiz (1984) and then by means of a simple model of scale economies and imperfect competition. Our results indicate that, within these contexts, real wages are likely to decline in response to emigration if (1) the migrants possess a large fraction of physical or human capital that they take with them when migration occurs, or (2) emigration reduces the scale of operation of domestic firms. Our conclusions are compared to those of Quibria (1989).
2016
This Sub-chapter examines the impact of immigration on the labour market situation of the employees of recipient countries in Europe, relying on empirical economic studies published in the past fifteen years. According to the simplest theoretic model of the labour market, a wave of immigration increases the labour supply of recipient countries, which reduces wage levels and expands employment in the short run. This model assumes that the labour force is homogeneous, i.e. immigrants are perfect substitutes for the employees of the recipient country. However, according to economic theory, migration does not lead to reduction in average wages in the long run: it may result in the expansion of employment, since the utilisation of cheaper production factors (employees) reduces the production costs and increases the profit of businesses, which in turn encourages more investment, increases the employment rate and wages.1 Our summary asks the question: does empirical research shed light on ...