Working Paper Series, Department of Economics, Copenhagen Business School
Nikolaj Malchow-Møller and Jan Rose Skaksen
Should Native Workers Welcome Foreign Workers in Upturns?
Abstract: In this paper, we show that the welfare implications of
immigration which takes place in upturns, and may be partly reversed in
downturns, are very different from the implications of immigration usually
found in static models. Abstracting from any gains to capital owners and
native workers due to complementarities, we find that (especially
temporary) immigration may still benefit native workers in a European type
of labour market where minimum wages may bind in downturns. However, in the
presence of hiring costs, these effects may be reversed. Thus, promoting
temporary immigration schemes may lead to adverse consequences if they also
increase the costs of hiring foreign labour.
Keywords: na; (follow links to similar papers)
JEL-Codes: E24; J61; (follow links to similar papers)
33 pages, January 1, 2008
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Lars Nondal ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom