THE IMPACT OF IMMIGRATION ON THE EMPLOYMENT AND WAGES OF NATIVE WORKERS
Andri Chassamboulli
University of Cyprus
Theodore Palivos
Athens University of Economics and Business
ABSTRACT
We analyze the impact of the immigration influx that took place during the years 2000-2007 in Greece on labor market outcomes. We employ a search and matching framework that allows for skill heterogeneity and differential unemployment income (search cost) between immigrants and natives. Within such a framework, we .find that skilled native workers, who complement immigrants in production, gain in terms of both wages and employment. The effects on unskilled native workers, who compete with immigrants, on the other hand, are ambiguous and depend first on the presence of a statutory minimum wage and second on the way that this minimum wage is determined.
Keywords: Immigration; Search and Matching; Unemployment; Skill-heterogeneity; Minimum Wage; Greek Economy.
JEL Classification: F22; J61; J64
Acknowledgements: The views expressed do not necessarily reflect those of the Bank of Greece.
Correspondence:
Theodore Palivos
Athens University of Economics and Business
76, Patission St.,
Greece, 10434,
Tel: +30 210 8203 741
e-mail: tpalivos@aueb.gr