Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
Restricted Immigration in a Two-Sector Economy
() and Thomas Grandner
Abstract: This paper deals with income redistribution and fiscal
effects caused by immigration in a two-sector economy ith fixed capital
endowments. We consider immigration under political control into one sector
only, guided by the stylized fact that empirical immigration distributions
often appear highly unequal. A distinguishing feature of the present model
are changing relative good prices which are ruled out in related single
sector models but typically also in open economy type of models. Thus even
pure wage earners may win from immigration. The political support for
immigration therefore crucially depends on relative sector size.
Furthermore the necessary tax-rate to finance the transfer system may
decrease as result of immigration. We also demonstrate that decreasing
relative productivity of the open sector is accompanied by decreasing
support for immigration.
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.
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design Joakim Ekebom