Restrictive Immigration Policy in Germany: Pains and Gains Foregone?

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. (2003), we estimate a structural model of labor demand, based on elasticities of substitution between workers with different experience levels and education. Terms of use: Documents in EconStor mayWe 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, we find moderate negative wage effects, combined with increased unemployment for some types of workers. Wage-setting mitigates wage cuts.JEL Code: F2, J01.

The Impact of Immigration on Native Wages and Employment

“…The two alternative samples make up four experience groups k = 4, but one of them contains three education classes j = 3 while the other contains six j = 6. Following Felbermayr, Geis, et Kohler (2010) and Gerfin et Kaiser (2010), I categorize individuals in four rather broad experience groups, each spanning an interval of 10 years of experience. This classification should attenuate the impact of any potential bias regarding the experience measure, and in particular, the fact that employers may evaluate the experience of immigrants differently from that of natives.…”

Selective Immigration Policies and Wages Inequality

“…(), Felbermayr et al. (), and Brücker and Jahn () for Germany, as well as Brücker et al. () for a comparative perspective between Denmark, Germany and the UK.…”

“…Angrist and Kugler () for a panel of European countries, Glitz () for Germany and Edo () for France. Hence, some other studies on the immigration impact in European countries have combined the structural approach with the possibility of wage rigidities (D'Amuri et al., ; Felbermayr et al., ; Brücker and Jahn ; Brücker et al., ). In particular, they allow immigration to impact the level of unemployment in the economy, inducing a sluggish reaction of wages.…”

“…() estimate the employment effects separately from the wage effects in reduced‐form equations, Felbermayr et al. (), Brücker and Jahn () and Brücker et al. () apply a wage‐setting framework to analyze the wage and employment effects of immigration simultaneously.…”

“…(), Felbermayr et al. (), and Brücker and Jahn () for Germany, Gerfin and Kaiser () for Switzerland and Manacorda et al. () for the UK.…”