NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Gabriel Felbermayr

Ifo Institute
Poschingerstra├če 5
81679 Munich
Germany

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NBER Working Papers and Publications

May 2014Immigration, Search, and Redistribution: A Quantitative Assessment of Native Welfare
with Michele Battisti, Giovanni Peri, Panu Poutvaara: w20131
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.
 
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