Immigration and Job Creation

Abstract

Chassamboulli discusses recent research on the effect of immigration policies on job creation. New findings show that various types of immigrants can have a positive impact on employers’ incentives to post vacancies and create new jobs, which benefits also competing natives. Policies that restrict the presence of foreign labour in the labour market are less beneficial to natives compared to policies that do not decrease immigration, but shift instead its composition towards the types of immigrants that benefit the natives the most. We explore one such policy combination that eliminates illegal immigration but allows for foreigners to enter on temporary work permits. Chassamboulli shows that this policy can help attenuate the negative job creation effect of fewer illegal immigrants in the market.