Migration, the Quality of the Labour Force and Economic Inequality

29 Pages Posted: 7 Jul 2008

See all articles by Martin Kahanec

Martin Kahanec

IZA Institute of Labor Economics; Central European University; Central European Labour Studies Institute

Klaus F. Zimmermann

Global Labor Organization (GLO); UNU-MERIT; Maastricht University, Department of Economics; Free University Berlin; University of Bonn; Centre for Economic Policy Research (CEPR); Journal of Population Economics

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Abstract

Mobility of workers involves flows of labour, human capital and other production factors and thus contributes to a more efficient allocation of resources. Besides these effects on allocative efficiency, migrant flows affect relative wages and also change the international and national distribution of skills and thereby equality in the receiving society. This paper suggests that skilled immigration promotes economic equality in advanced economies under standard conditions. The context is theoretically explained in a core model and empirically documented using unique data from the WIID database and OECD.

Keywords: inequality, income distribution, human capital, skill allocation, migration, ethnicity, minority, Gini-coefficient

JEL Classification: D33, E25, F22, J15, J61, O15

Suggested Citation

Kahanec, Martin and Zimmermann, Klaus F., Migration, the Quality of the Labour Force and Economic Inequality. , Vol. , pp. -, . Available at SSRN: https://ssrn.com/abstract=1155834 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Martin Kahanec (Contact Author)

IZA Institute of Labor Economics ( email )

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Central European University ( email )

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Hungary

Central European Labour Studies Institute ( email )

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Klaus F. Zimmermann

Global Labor Organization (GLO) ( email )

Bonn
Germany

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UNU-MERIT ( email )

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Netherlands

Maastricht University, Department of Economics ( email )

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University of Bonn

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Bonn, D-53012
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Journal of Population Economics

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D-69121 Heidelberg
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