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Are Migration Policies that Induce Skilled (Unskilled) Migration Beneficial (Harmful) for the Host Country?

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  • Michael S. Michael

Abstract

This paper investigates the welfare consequences of immigration policies in a model with two types of labour, skilled and unskilled, and international capital mobility. The paper examines the effect of government policies – which change the immigration cost and causes immigration of one type of labour – on the welfare of natives when the other type of labour and/or capital are also mobile. It is shown that in the absence of capital mobility, if skilled and unskilled labour are highly complementary in production (as attested by many empirical studies), then a decrease in the immigration cost of the net fiscal contributor skilled labour decreases the welfare of natives.

Suggested Citation

  • Michael S. Michael, 2006. "Are Migration Policies that Induce Skilled (Unskilled) Migration Beneficial (Harmful) for the Host Country?," CESifo Working Paper Series 1814, CESifo.
    • Handle: RePEc:ces:ceswps:_1814
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp1814.pdf
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    References listed on IDEAS

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    11. Assaf Razin & Efraim Sadka, 2004. "Welfare Migration: Is the Net Fiscal Burden a Good Measure of its Economic Impact on the Welfare of the Native-Born Population?," CESifo Economic Studies, CESifo Group, vol. 50(4), pages 709-716.
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    Cited by:

    1. Alexander Kemnitz, 2009. "Native welfare losses from high skilled immigration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 560-570, August.

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    Keywords

    migration policies; skilled and unskilled labour; capital mobility; welfare;
    All these keywords.

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