This paper uses a dynamic efficiency-wage model to analyze the consequences of immigration for a small country when there is discrimination against immigrants in a dual labor market with unemployment. Discrimination is of the type 'equal pay for equal work, but unequal work' which is...

There is disagreement in the literature about the determinants of attitudes toward immigration. Some authors emphasize the role of economic motivations, others argue that attitudes are mostly determined by individual beliefs. This paper reconciles the two positions. We estimate a structural...