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The effect of labour unions on immigrant unemployment
Mälardalen University, School of Business, Society and Engineering.
2023 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

One purpose of labour unions is to promote equal outcomes for workers. However, immigration causes the labour force to become more heterogeneous. As a result, the promotion of equal outcomes may have unintended effects. This paper develops a search and matching model to investigate the effect of labour unions on the labour market opportunities of immigrants. The model is calibrated and then tested by running simulations. It is found that labour unions cause the unemployment rate of immigrants to be higher than that of natives, both with and without discrimination. The difference in unemploymentrate is greater when the difference between immigrants and natives is greater. In most cases, discrimination only has a small effect. To see large effects of discrimination, we have to consider extreme situations, such as when the difference between immigrants and natives is large, and, at the same time, immigrants make up a large fraction of the labour force. The results suggest that integration of immigrants may be ineffective when there is a labour union controlling wages.

Place, publisher, year, edition, pages
2023. , p. 40
Keywords [en]
Labour unions, immigration, discrimination, unemployment
National Category
Economics
Identifiers
URN: urn:nbn:se:mdh:diva-62858OAI: oai:DiVA.org:mdh-62858DiVA, id: diva2:1762428
Subject / course
Economics
Supervisors
Examiners
Available from: 2023-06-09 Created: 2023-06-03 Last updated: 2023-06-09Bibliographically approved

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Sundkvist Olsson, Gustav
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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf