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Restrictive immigration policy in Germany: pains and gains foregone?

[Zeitschriftenartikel]

Felbermayr, Gabriel; Geis, Wido; Kohler, Wilhelm

Zitationshinweis

Bitte beziehen Sie sich beim Zitieren dieses Dokumentes immer auf folgenden Persistent Identifier (PID):http://nbn-resolving.de/urn:nbn:de:0168-ssoar-214091

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Abstract Many European countries restrict immigration from new EU member countries. The rationale is to avoid adverse wage and employment effects. We quantify these effects for Germany. Following Borjas (in Q J Econ CXVIII(4):1335–1374, 2003), we estimate a structural model of labor demand, based on elasticities of substitution between workers with different experience levels and education. We allow for unemployment which we model in a price-wage-setting framework. Simulating a counterfactual scenario without restrictions for migration from new EU members countries in Germany, we find moderate negative wage and employment effects for incumbent foreigners, but positive effects for natives. Our results indicate that for the native German population as a whole the immigration restrictions are not welfare enhancing.
Thesaurusschlagwörter unemployment; EU expansion; wage; labor demand; labor migration; Federal Republic of Germany; migration
Klassifikation Arbeitsmarktforschung; Wirtschaftswissenschaften
Freie Schlagwörter Labor demand; Wages; Unemployment; EU enlargement; JEL classification: F22; F15; J23
Sprache Dokument Englisch
Publikationsjahr 2010
Seitenangabe S. 1-21
Zeitschriftentitel Review of World Economics, 146 (2010) 1
DOI http://dx.doi.org/10.1007/s10290-009-0044-z
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)
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