A Comparative Static Model of the Relationship between Immigration and the Short-Run Job Prospects of Unemployed Residents

The Economic Record

Posted: 13 Jan 2000

See all articles by Bruce Chapman

Bruce Chapman

Australian National University, Research School of Social Sciences (RSSS) - Economics Program; Australian National University (ANU) - Crawford School of Public Policy

Deborah A. Cobb-Clark

School of Economics, University of Sydney; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Abstract

Much of the debate surrounding the impact of immigration on the economy relates to the consequences of immigration for aggregate unemployment. In this paper we explore a related but more specific issue: the consequences of immigration for the probability of unemployed residents finding a job. Two competing effects are modeled. First, by adding to the supply of labor immigrants compete with unemployed resident workers for jobs. Second, immigrants add to employment opportunities because they bring with them savings which are spent on domestic goods and services. Understanding how immigration affects employment prospects requires knowing which effect is bigger.

Using Australian data from 1978 - 1997 it is possible to set boundries on the key paramaters affecting the overall effect of immigrantion on employment opportunities for resident workers. From these data there is a clear finding that under the vast majority of Australian labor market considions between 1978 and 1997 immigramts improved rather than worsened the employment prospects of unemployed residents.

Note: This is a description of the paper and not the actual abstract.

JEL Classification: J61, J63, J64

Suggested Citation

Chapman, Bruce James and Cobb-Clark, Deborah A., A Comparative Static Model of the Relationship between Immigration and the Short-Run Job Prospects of Unemployed Residents. The Economic Record. Available at SSRN: https://ssrn.com/abstract=166435

Bruce James Chapman

Australian National University, Research School of Social Sciences (RSSS) - Economics Program ( email )

HC Coombs Building
Australian National University
Canberra, Australian Capital Territory 0200
Australia

Australian National University (ANU) - Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Deborah A. Cobb-Clark (Contact Author)

School of Economics, University of Sydney ( email )

606 Social Sciences Bldg. (A02)
The University of Sydney
Sydney, NSW 2006
Australia
61435061387 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Abstract Views
662
PlumX Metrics