Immigration Flows and Regional Labor Market Dynamics

In recent years, growing immigration flows and persistently high unemployment have become common features of many Western economies (see Appleyard (1993)). As a consequence, concern about the ability of the labor markets to integrate these newcomers has risen and, in many countries, demands to curtail immigration levels have become more pressing. The arguments most often heard are along the following lines: Immigrants steal jobs from native workers; and immigrants are unskilled and therefore put pressure on the public purse because they do not find jobs. In both cases, they are held responsible for high unemployment.