Unemployment Insurance, Immigrants' Skills, and Native Earnings
Author: Kemnitz A.
Source: FinanzArchiv: Public Finance Analysis, Volume 60, Number 1, 1 May 2004 , pp. 111-139(29)
Publisher: Mohr Siebeck
Abstract:
This paper investigates the effect of immigration on native earnings in the presence of unemployment and various social insurance policies. If immigration decreases the economy-wide skill ratio and the welfare state is actuarially fair, total native earnings increase under the constant-replacement-ratio policy, while they decrease under both the constant-benefit and the constant-average-income policy. If, however, immigrants improve the economy-wide skill ratio, natives as a whole gain unambiguously, but most under a constant benefit. The ranking between social policies is robust with respect to general taxation, but can reverse when native educational choices are endogenous.Keywords: IMMIGRATION; TRADE UNION; UNEMPLOYMENT; WELFARE STATE; SOCIAL INSURANCE; SKILL
Document Type: Research article
Publication date: 2004-05-01
- FinanzArchiv founded in 1884 is one of the world's oldest professional journals in public finance.
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