The effects of discrimination of immigrants on the labour market are studied within a search and wage-bargaining setting including a risk of losing skills during the experience of unemployment. The negative effects of discrimination in the form of higher unemployment and lower wages spread to all workers, immigrants and natives, in all sectors of the economy. The effect is stronger for immigrants, but natives suffer as well. An increase in the share of immigrants in the economy exacerbates the problem of discrimination.
|Place of Publication||Frederiksberg|
|Publisher||Copenhagen Business School, CBS|
|Number of pages||34|
|Publication status||Published - 30 Nov 2007|
|Series||Working Paper / Department of Economics. Copenhagen Business School|