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Title: Immigration, Search, and Redistribution: A Quantitative Assessment of Native Welfare

Citation Type: Working Paper

Publication Year: 2014

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Abstract: We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of search frictions. These gains tend to outweigh the welfare costs of redistribution. Immigration has increased native welfare in almost all countries. Both high-skilled and low-skilled natives benefit in two thirds of countries, contrary to what models without search frictions predict. Median total gains from migration are 1.19% and 1.00% for high and low skilled natives, respectively

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Authors: Poutvaara, Panu; Battisti, Michele; Peri, Giovanni; Felbermayr, Gariel

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Publication Number: 20131

Institution: National Bureau of Economic Research

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Data Collections: IPUMS USA

Topics: Migration and Immigration, Poverty and Welfare

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