Quotation Battisti, Michele, Peri, Giovanni, Poutvaara, Panu, Felbermayr, Gabriel. 2017. Immigration, Search and Redistribution: A Quantitative Assessment of Native Welfare. Journal of the European Economic Association. 16 (4), 1137-1188.


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Abstract

What are the welfare effects of immigration on low-skilled and high-skilled natives? To address this question, we develop a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a welfare state that redistributes income through unemployment benefits and the provision of public goods. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of search frictions. The resulting gains tend to outweigh the welfare costs of redistribution. Immigration has increased native welfare in almost all countries. In two-thirds of countries, both high- and low-skilled natives have benefited from the presence of immigrants, contrary to what models without search frictions or redistribution predict. Average total welfare gains from migration are 1.25% and 1.00% for high- and low-skilled natives, respectively.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Journal of the European Economic Association
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-A, WH-A
Language English
Title Immigration, Search and Redistribution: A Quantitative Assessment of Native Welfare
Volume 16
Number 4
Year 2017
Page from 1137
Page to 1188
Reviewed? Y
URL http://academic.oup.com/jeea/article-pdf/16/4/1137/25536274/jvx035.pdf
DOI http://dx.doi.org/10.1093/jeea/jvx035
Open Access N
JEL JEL: F22, J61, J64

Associations

People
Felbermayr, Gabriel (Details)
External
Battisti, Michele (Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, Germany)
Peri, Giovanni (University of California, United States/USA)
Poutvaara, Panu (LMU Munich, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, Germany)
Organization
Department of Economics (Felbermayr) (Details)
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