Restrictive immigration policy in Germany: pains and gains foregone?

Felbermayr, Gabriel; Geis, Wido; Köhler, Wilhelm

doi:10.1007/s10290-009-0044-z

Cited by 37 publications

(36 citation statements)

References 21 publications

(17 reference statements)

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“…For Great Britain, Manacorda et al (2006) report that a 10% rise in all immigrants raises the native-immigrant wage differential by 2.3%. Studies on Germany include Brücker and Jahn (2008), Felbermayr et al (2008) On the whole, these studies find small positive effects for natives and negative effects for previous immigrants in the long run. Allowing for wage rigidities due to the more sclerotic labour market, they report that a negative impact on unemployment induced by immigration partially offsets a decline in wages.…”

Section: The Skill-cell Methodsmentioning

confidence: 99%

The effects of immigration on wages: An application of the structural skill-cell approach

Gerfin

Kaiser

2010

Swiss J Economics Statistics

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Summary This paper investigates how recent immigration inflows from 2002 to 2008 have affected wages in Switzerland. This period is of particular interest as it marks the time during which the bilateral agreement with the EU on the free cross-border movement of workers has been effective. Since different types of workers are likely to be unevenly affected by recent immigration inflows, we follow the “structural skill-cell approach” as for example employed by Borjas (2003) and Ottaviano and Peri (2008). This paper provides two main contributions. First, we estimate empirically the elasticities of substitution between different types of workers in Switzerland. Our results suggest that natives and immigrants are imperfect substitutes. Regarding different skill levels, the estimates indicate that workers are imperfect substitutes across broad education groups and across different experience groups. Second, the estimated elasticities of substitution are used to simulate the impact on domestic wages using the actual immigration inflows from 2002 to 2008. For the long run, the simulations produce some notable distributional consequences across different types of workers: While previous immigrants incur wage losses (−1.6%), native workers are not negatively affected on average (+0.4%). In the short run, immigration has a negative macroeconomic effect on the average wage, which, however, gradually dies out in the process of capital adjustment.

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Section: The Skill-cell Methodsmentioning

confidence: 99%

The effects of immigration on wages: An application of the structural skill-cell approach

Gerfin

Kaiser

2010

Swiss J Economics Statistics

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“…In order to quantify the overall impact of immigration on the wages of native workers, a recent wave of European studies thus accounts for the sluggish adjustment of wages (see, e.g., D' Amuri et al (2010), Felbermayr et al (2010), and Brücker and Jahn (2011) for Germany; Brücker et al (2014) for Denmark; and Edo and Toubal (2015) for France). Other studies complement these investigations by examining the work for this analysis since it has a rigid wage structure (Card et al 1999), and around 88 % of workers are covered by indefinite-term contracts.…”

Section: Introductionmentioning

confidence: 99%

How do rigid labor markets absorb immigration? Evidence from France

Edo

2016

IZA J Migration

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This paper investigates how immigration can affect the labor market outcomes of native workers when their wages are rigid. I use a rich dataset for France and decompose the native workers according to whether they are covered by fixed-term or indefinite-term contracts. Indefinite-term contracts are associated with higher wage protection than fixed-term contracts that allow firms to adjust wages as contracts expire. I use an empirical methodology which captures the direct effects of an immigrant-induced increase in labor supply on the labor market outcomes of natives who have similar skills. I find that the monthly wage of native workers covered by fixed-term contracts decreases in response to immigration, while employment is the margin through which native workers on indefinite-term contracts is affected.JEL codes: F22, J23, J41

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“…This is due to the fact that Eastern German immigrants are on average more educated than immigrants from the rest of the world. Thus, including Eastern Germans in the analysis contributes to a more balanced picture of the effect of immigrants to Western Germany, rather than focussing only on foreign immigrants (as is done in Felbermayr et al (2008)). …”

Section: Wage Effects On Long-term Immigrants 1992-2001mentioning

confidence: 99%

“…Those studies have either used somewhat different data (such as the GSOEP used in Felbermayr et al (2008)) or focused on somewhat different policy experiments (as Brucker and Jahn (2008) …”

Section: Immigration To Western Germany and Related Literaturementioning

confidence: 99%

The labor market impact of immigration in Western Germany in the 1990s

D’Amuri

Ottaviano

Peri

2010

European Economic Review

203

130

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In this article we measure the effects of recent immigration on the Western German labor market looking at both wage and employment effects. Refining administrative data for the period 1987-2001 to account for ethnic German immigrants and immigrants from Eastern Germany, we find that the substantial immigration of the 1990's had very little adverse effects on native wages and on their employment levels. Instead, it had a sizable adverse employment effect as well as a small adverse wage effect on previous waves of immigrants. These asymmetric results are partly driven by a higher degree of substitution between old and new immigrants in the labor market. In a simple calculation we show that the largest aggregate effect of new immigration on natives and old immigrants comes from the increased costs of unemployment benefits to old immigrants. Those costs could be eliminated in a world of wage flexibility and no unemployment insurance in which immigration would not have any negative employment effect but only moderate wage effects. Keywords:

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Restrictive immigration policy in Germany: pains and gains foregone?

Cited by 37 publications

References 21 publications

The effects of immigration on wages: An application of the structural skill-cell approach

The effects of immigration on wages: An application of the structural skill-cell approach

How do rigid labor markets absorb immigration? Evidence from France

The labor market impact of immigration in Western Germany in the 1990s

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