European Business Schools Librarian's Group

Les Cahiers de Recherche,
HEC Paris

No 673: Immigration, Unemployment and Welfare

Marc CHESNEY , Bharat R. HAZARI and Pasquale M. SGRO
Additional contact information
Bharat R. HAZARI: School of Economics, Faculty of Business and Law, Postal: Deakin University, 221 Burwood Highway, Burwood Victoria, 3125 Australia
Pasquale M. SGRO: School of Economics, Faculty of Business and Law, Postal: Deakin University, 221 Burwood Highway, Burwood Victoria, 3125 Australia

Abstract: The recent flows of immigrants to many countries has been categorised by both legal/illegal migrants. Such migration flows have occurred despite the presence of domestic unemployment of various categories of labour. It has also been observed that migration has lowered the reward of unskilled workers. These problems are analysed on the basis of two alternative models: (i) where skilled workers and (ii) where unskilled workers are unemployed. It is shown that migration may raise both skilled/unskilled employment and welfare under plausible factor intensity conditions. More importantly, illegal migration may help in lowering the relative price of the non-traded good while the impact of migration on structural adjustment is ambiguous.

Keywords: immigration; unemployment

JEL-codes: E24; F22

16 pages, April 1, 1999

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