Immigration and two-component unemployment

Max Albert and Jürgen Meckl

We analyze the employment effects of immigration within a model that accounts for several stylized facts of the German labor market. The co-existence of positive wage spans and unemployment is explained by wage rigidities that are simultaneously caused by effciency-wage setting and minimum wages. The observed positive relation between wage spans and minimum wages results from employment shifts from low-wage to high-wage sectors. Employment effects of immigration are opposite to those of a rise in the minimum wage. For plausible parameter values, immigration raises employment of the home labor force even if all immigrants find employment.

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Year of publication:	2002
Authors:	Albert, Max ; Meckl, Jürgen
Publisher:	Dresden : Techn. Univ., Fak. Wirtschaftswiss.
Subject:	immigration \| unemployment \| effciency wage \| wage drift \| wage span \| Einwanderung \| Immigration \| Beschäftigungseffekt \| Employment effect \| Theorie der Arbeitslosigkeit \| Unemployment theory \| Effizienzlohn \| Efficiency wages \| Lohnrigidität \| Wage rigidity \| Mehrsektoren-Modell \| Multisectoral model \| Lohnstruktur \| Wage structure \| Theorie \| Theory

Extent:	Online-Ressource ([1], 18 S.)
Series:	Dresden discussion paper series in economics. - Dresden : [Verlag nicht ermittelbar], ZDB-ID 2148053-9. - Vol. 04/02
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/48135 [Handle]
Classification:	F11 - Neoclassical Models of Trade ; F22 - International Migration ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	ECONIS - Online Catalogue of the ZBW

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