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Migration, the quality of the labour force and economic inequality

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Kahanec, Martin ; Zimmermann, Klaus F.

Institute of Labor Economics, Bonn

IZA - Bonn

2008

27 p.

income distribution ; labour force ; migration ; social inequality

OECD countries

Discussion Paper Series

3560

Migration

http://www.iza.org/

English

Bibliogr.

"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. "

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