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Unskilled immigrants, are they enemies of native workers? : Study on general equilibrium model of immigration surplus

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Frame of Image fillment of the requirements for the degree of MASTER OF PUBLIC POLICY
2002 Professor Ju-Ho Lee
ABSTRACT
Unskilled Immigrants, are they Enemies of Native Workers? -Study on General Equilibrium Model of Immigration SurplusBy Sung-Hoon JEA
From the late 1980s, Korea became a new destination of unskilled foreign workers, and they got to compose over 1 percent total labor force in 2000. Mostly coming from underdeveloped, other Asian neighborhood, they work in small, manufacturing factories where natives no more want to work. According to Borjas’ (1994) immigration surplus model, natives benefit from labor import because of production complementarities between immigrant workers and other factors of production. Empirical estimation suggests that 1% unskilled labor import in Korea has contributed to a bit less than 0.002% increase in GDP or about 7 billion won in a 450 trillion won economy in the latter half of the 1990s. This small impact results partly from low percentage of immigrants’ presence in Korean labor market. If their fraction increases, foreign workers will bring larger surplus because of high elasticity of factor price for labor. Moreover, diverse socio-economic theories strongly suggest that immigration does not greatly reduce the natives’ employment opportunities thanks to segmented labor market structures and after-immigration economic expansion. Thus, even though there are some disputes on desirable level of immigrants’ skill or the effect of income redistribution,


Full Text
Title Unskilled immigrants, are they enemies of native workers?
Similar Titles
Sub Title

Study on general equilibrium model of immigration surplus

Material Type Reports
Author(English)

Jea, Sung-Hoon

Publisher

[Seoul]:KDI School of Public Policy and Management

Date 2002
Pages 62
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Social Development < Employment
Holding KDI School of Public Policy and Management

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Thesis(Master)