41 Pages Posted: 19 May 2014
Date Written: May 2014
We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of search frictions. These gains tend to outweigh the welfare costs of redistribution. Immigration has increased native welfare in almost all countries. Both high-skilled and low-skilled natives benefit in two thirds of countries, contrary to what models without search frictions predict. Median total gains from migration are 1.19% and 1.00% for high and low skilled natives, respectively.
Suggested Citation: Suggested Citation
Battisti, Michele and Felbermayr, Gabriel J. and Peri, Giovanni and Poutvaara, Panu, Immigration, Search, and Redistribution: A Quantitative Assessment of Native Welfare (May 2014). NBER Working Paper No. w20131. Available at SSRN: https://ssrn.com/abstract=2438552