Migration and imperfect labor markets: theory and cross-country evidence from Denmark, Germany and the UK
We investigate the labor market effects of immigration in Denmark, Germany and the UK, three countries which are characterized by considerable differences in labor market institutions and welfare states. Institutions such as collective bargaining, minimum wages, employment protection and unemploymen...
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| Format: | Article |
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2013
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| Online Access: | https://eprints.nottingham.ac.uk/29764/ |
| _version_ | 1848793848985157632 |
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| author | Brücker, Herbert Hauptmann, Andreas Jahn, Elke J. Upward, Richard |
| author_facet | Brücker, Herbert Hauptmann, Andreas Jahn, Elke J. Upward, Richard |
| author_sort | Brücker, Herbert |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We investigate the labor market effects of immigration in Denmark, Germany and the UK, three countries which are characterized by considerable differences in labor market institutions and welfare states. Institutions such as collective bargaining, minimum wages, employment protection and unemployment benefits affect the way in which wages respond to labor supply shocks, and, hence, the labor market effects of immigration. We employ a wage-setting approach which assumes that wages decline with the unemployment rate, albeit imperfectly. We find that the wage and employment effects of immigration depend on wage flexibility and the composition of the labor supply shock. In Germany immigration involves only moderate wage, but large unemployment effects, since immigrants are concentrated in labor market segments with low wage flexibility. The reverse is true for the UK and Denmark. |
| first_indexed | 2025-11-14T19:06:50Z |
| format | Article |
| id | nottingham-29764 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:06:50Z |
| publishDate | 2013 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-297642020-05-04T16:39:44Z https://eprints.nottingham.ac.uk/29764/ Migration and imperfect labor markets: theory and cross-country evidence from Denmark, Germany and the UK Brücker, Herbert Hauptmann, Andreas Jahn, Elke J. Upward, Richard We investigate the labor market effects of immigration in Denmark, Germany and the UK, three countries which are characterized by considerable differences in labor market institutions and welfare states. Institutions such as collective bargaining, minimum wages, employment protection and unemployment benefits affect the way in which wages respond to labor supply shocks, and, hence, the labor market effects of immigration. We employ a wage-setting approach which assumes that wages decline with the unemployment rate, albeit imperfectly. We find that the wage and employment effects of immigration depend on wage flexibility and the composition of the labor supply shock. In Germany immigration involves only moderate wage, but large unemployment effects, since immigrants are concentrated in labor market segments with low wage flexibility. The reverse is true for the UK and Denmark. 2013-11-25 Article PeerReviewed Brücker, Herbert, Hauptmann, Andreas, Jahn, Elke J. and Upward, Richard (2013) Migration and imperfect labor markets: theory and cross-country evidence from Denmark, Germany and the UK. European Economic Review, 66 . pp. 205-225. ISSN 0014-2921 Immigration; Unemployment; Wages; Panel data; Comparative studies http://www.sciencedirect.com/science/article/pii/S0014292113001438 doi:10.1016/j.euroecorev.2013.11.007 doi:10.1016/j.euroecorev.2013.11.007 |
| spellingShingle | Immigration; Unemployment; Wages; Panel data; Comparative studies Brücker, Herbert Hauptmann, Andreas Jahn, Elke J. Upward, Richard Migration and imperfect labor markets: theory and cross-country evidence from Denmark, Germany and the UK |
| title | Migration and imperfect labor markets: theory and
cross-country evidence from Denmark, Germany and the UK |
| title_full | Migration and imperfect labor markets: theory and
cross-country evidence from Denmark, Germany and the UK |
| title_fullStr | Migration and imperfect labor markets: theory and
cross-country evidence from Denmark, Germany and the UK |
| title_full_unstemmed | Migration and imperfect labor markets: theory and
cross-country evidence from Denmark, Germany and the UK |
| title_short | Migration and imperfect labor markets: theory and
cross-country evidence from Denmark, Germany and the UK |
| title_sort | migration and imperfect labor markets: theory and
cross-country evidence from denmark, germany and the uk |
| topic | Immigration; Unemployment; Wages; Panel data; Comparative studies |
| url | https://eprints.nottingham.ac.uk/29764/ https://eprints.nottingham.ac.uk/29764/ https://eprints.nottingham.ac.uk/29764/ |