The Demand for High-Skilled Workers and Immigration Policy

Working Paper: CEPR ID: DP4274

Authors: Thomas Bauer; Astrid Kunze

Abstract: This Paper provides a descriptive analysis of the demand for high-skilled workers using a new firm dataset, the IZA International Employer Survey 2000. Our results suggest that while workers from EU countries are mainly complements to domestic high-skilled workers, workers from non-EU countries are hired because of a shortage of high-skilled labour. The Paper, furthermore, provides a short description of recent German policy initiatives regarding the temporary immigration of high-skilled labour. In view of our descriptive results these temporary immigration policies seem, however, to satisfy only partly the demand of firms interested in recruiting foreign high-skilled workers. A more comprehensive immigration policy covering also the permanent immigration of high-skilled workers appears to be necessary.

Keywords: high-skilled worker; immigration policy; IZA employer survey; migration

JEL Codes: F22; J41


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Domestic shortage of skilled labor (J24)Firms recruiting high-skilled foreign workers (J68)
Firms recruiting high-skilled foreign workers (J68)Higher overall shares of high-skilled workers (J69)
Foreign high-skilled workers (J61)Unique knowledge and skills not available domestically (F59)
Foreign high-skilled workers (J61)Complements to domestic high-skilled workers (J24)
Temporary immigration policies (J68)Partial satisfaction of demand for high-skilled labor (J69)

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