Michele Battisti, Gabriel Felbermayr, Giovanni Peri, Panu Poutvaara, 08 August 2014

Immigration continues to be a hotly debated topic in most OECD countries. Economic models emphasising the benefits of immigration for natives have typically neglected unemployment and redistribution – precisely the things voters are most concerned about. This column analyses the effects of immigration in a world with labour market rigidities and income redistribution. In two-thirds of the 20 countries analysed, both high-skilled and low-skilled natives would benefit from a small increase in immigration from current levels. The average welfare gains from immigration are 1.25% and 1.00% for high- and low-skilled natives, respectively.

Gianmarco Ottaviano, Giovanni Peri, Francesco D'Amuri, 10 March 2008

Germany has the largest number of foreign individuals in Europe, and foreign workers represent around 10% of the total labour force. The authors of CEPR DP6736 measure the effects of the substantial immigration of the 1990s on the Western German labour market and find that it had no adverse effects on native wages and employment levels, but instead led to adverse effects on previous immigrants.

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