Migration and the Wage-Settings Curve: Reassessing the Labor Market Effects of Migration.

In this paper we examine the labor market effects of migration in Germany on basis of a wage-setting curve. The wage-setting curve relies on the assumption that wages respond to a change in the un- employment rate, albeit imperfectly. This allows one to derive the wage and employment effects of migration simultaneously in a gen- eral equilibrium framework. Using administrative micro data we find that the elasticity of the wage-setting curve is particularly high for young workers and workers with an university degree, while it is low for older workers and workers with a vocational degree. The wage and employment effects of migration are moderate: a 1 percent increase in the German labor force through immigration increases the aggregate unemployment rate by less than 0.1 percentage points and reduces average wages by 0.1 percent in the short run. While native workers benefit from increased wages and lower unemployment, foreign work- ers are adversely affected.Migration; wage-setting curve; labor markets; panel data

Migration and the Wage Curve: A Structural Approach to Measure the Wage and Employment Effects of Migration

Based on a wage curve approach we examine the labor market effects of migration in Germany. The wage curve relies on the assumption that wages respond to a change in the unemployment rate, albeit imperfectly. This allows one to derive the wage and employment effects of migration simultaneously in a general equilibrium framework. For the empirical analysis we employ the IABS, a two percent sample of the German labor force. We find that the elasticity of the wage curve is particularly high for young workers and workers with a university degree, while it is low for older workers and workers with a vocational degree. The wage and employment effects of migration are moderate: a 1 percent increase in the German labor force through immigration increases the aggregate unemployment rate by less than 0.1 percentage points and reduces average wages by less 0.1 percent. While native workers benefit from increased wages and lower unemployment, foreign workers are adversely affected.migration, wage curve, labor demand, panel data

Migration and the wage curve: a structural approach to measure the wage and employment effects of migration

Based on a wage curve approach we examine the labor market effects of migration in Germany. The wage curve relies on the assumption that wages respond to a change in the unemployment rate, albeit imperfectly. This allows one to derive the wage and employment effects of migration simultaneously in a general equilibrium framework. For the empirical analysis we employ the IABS, a two percent sample of the German labor force. We find that the elasticity of the wage curve is particularly high for young workers and workers with a university degree, while it is low for older workers and workers with a vocational degree. The wage and employment effects of migration are moderate: a 1 percent increase in the German labor force through immigration increases the aggregate unemployment rate by less than 0.1 percentage points and reduces average wages by less 0.1 percent. While native workers benefit from increased wages and lower unemployment, foreign workers are adversely affected

Arbeitsmarktwirkungen der Migration: Einheimische Arbeitskräfte gewinnen durch Zuwanderung

Migration muss nicht zu sinkenden Löhnen und steigender Arbeitslosigkeit führen. In Deutschland gewinnen einheimische Arbeitskräfte langfristig sogar durch Zuwanderung, während die bereits im Land lebenden Ausländer verlieren. Das zeigt ein neuer Ansatz, der es erlaubt, die Lohn- und Beschäftigungswirkungen der Zuwanderung simultan zu schätzen. Die gesamtwirtschaftlichen Arbeitsmarktwirkungen der Migration fallen umso günstiger aus, je höher die Qualifikation der Zuwanderer und je geringer ihre Berufserfahrung ist. Der deutsche Arbeitsmarkt würde von einer Steuerung der Zuwanderung nach diesen Kriterien ebenso profitieren wie von einer besseren Integration ausländischer Arbeitskräfte

Migration and wage-setting: reassessing the labor market effects of migration

This paper employs a wage-setting approach to analyze the labor market effects of immigration into Germany. The wage-setting framework relies on the assumption that wages tend to decline with the unemployment rate, albeit imperfectly. This enables us to consider labor market rigidities, which are particularly relevant in Europe. We find that the elasticity of the wage-setting curve is particularly high for young and well-educated workers. The labor market effects of immigration are moderate: a 1 percent increase in the German labor force through immigration increases the unemployment rate by less than 0.1 percentage points and reduces wages by 0.1 percent

Migration and imperfect labor markets: Theory and cross-country evidence from Denmark, Germany and the UK

We investigate the labor market effects of immigration in Denmark, Germany and the UK, three countries which are characterized by considerable differences in labor market institutions and welfare states. Institutions such as collective bargaining, minimum wages, employment protection and unemployment benefits affect the way in which wages respond to labor supply shocks, and, hence, the labor market effects of immigration. We employ a wage-setting approach which assumes that wages decline with the unemployment rate, albeit imperfectly. We find that wage flexibility is substantially higher in the UK compared to Germany and, in particular, Denmark. As a consequence, immigration has a much larger effect on the unemployment rate in Germany and Denmark, while the wage effects are larger in the UK. Moreover, the elasticity of substitution between natives and foreign workers is high in the UK and particularly low in Germany. Thus, the preexisting foreign labor force suffers more from further immigration in Germany than in the UK

Migration and imperfect labor markets: theory and cross-country evidence from Denmark, Germany and the UK

We investigate the labor market effects of immigration in Denmark, Germany and the UK, three countries which are characterized by considerable differences in labor market institutions and welfare states. Institutions such as collective bargaining, minimum wages, employment protection and unemployment benefits affect the way in which wages respond to labor supply shocks, and, hence, the labor market effects of immigration. We employ a wage-setting approach which assumes that wages decline with the unemployment rate, albeit imperfectly. We find that the wage and employment effects of immigration depend on wage flexibility and the composition of the labor supply shock. In Germany immigration involves only moderate wage, but large unemployment effects, since immigrants are concentrated in labor market segments with low wage flexibility. The reverse is true for the UK and Denmark

V605 Aquilae: a born again star, a nova or both?

V605 Aquilae is today widely assumed to have been the result of a final helium shell flash occurring on a single post-asymptotic giant branch star. The fact that the outbursting star is in the middle of an old planetary nebula and that the ejecta associated with the outburst is hydrogen deficient supports this diagnosis. However, the material ejected during that outburst is also extremely neon rich, suggesting that it derives from an oxygen-neon-magnesium star, as is the case in the so-called neon novae. We have therefore attempted to construct a scenario that explains all the observations of the nebula and its central star, including the ejecta abundances. We find two scenarios that have the potential to explain the observations, although neither is a perfect match. The first scenario invokes the merger of a main sequence star and a massive oxygen-neon-magnesium white dwarf. The second invokes an oxygen-neon-magnesium classical nova that takes place shortly after a final helium shell flash. The main drawback of the first scenario is the inability to determine whether the ejecta would have the observed composition and whether a merger could result in the observed hydrogen-deficient stellar abundances observed in the star today. The second scenario is based on better understood physics, but, through a population synthesis technique, we determine that its frequency of occurrence should be very low and possibly lower than what is implied by the number of observed systems. While we could not envisage a scenario that naturally explains this object, this is the second final flash star which, upon closer scrutiny, is found to have hydrogen-deficient ejecta with abnormally high neon abundances. These findings are in stark contrast with the predictions of the final helium shell flash and beg for an alternative explanation.Comment: 8 pages, 1 figures, 2 tables, accepted for MNRAS. Better title and minor corrections compared to previous versio