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Author:Müller, T.
Title:Migration, unemployment and discrimination
Journal:European Economic Review
2003 : JUN, VOL. 47:3, p. 409-427
Index terms:Migration
Unemployment
Discrimination
Labour markets
Europe
Language:eng
Abstract:The paper uses a dynamic efficiency-wage model to analyze the consequences of immigration for a small country when there is discrimination against immigrants in a dual labour market with unemployment. Discrimination is of the type 'equal pay for equal work, but unequal work' which is characteristic of economies with 'guest-worker' systems. The model exhibits three regimes for rising immigration levels. An analysis of regime switches shows that changes attributable to 'globalization' and technical progress are consistent with growing opposition to immigration.
SCIMA record nr: 250910
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