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2017 | OriginalPaper | Chapter

5. Temporary and Permanent Immigration Under Unionization

Author : Kenji Kondoh

Published in: The Economics of International Immigration

Publisher: Springer Singapore

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Abstract

Some argue that labor is the least mobile factor of production in the real world due to legal barriers set up by sovereign states. Despite of being an integral part of globalization, immigration is viewed negatively in public opinion. Often when related issues appear in the media, they are about illegal immigrants or some other negative images such as taking jobs away, depressing wages, etc. It seems the imperfections in the labor market, such as unionization, also serve to create the negative images. For instance, it is alleged that “mass immigration helps employers and hurts workers, and unions flourish when immigration is low and they flounder when immigration is high” (Salt Lake Union Tribune, September 3, 2001). There are also cries that the AFL-CIO has abandoned American workers, because the Executive Council of the AFL-CIO in February 2000 announced a reversal in its posture, by proclaiming that it now “proudly stands on the side of immigrant workers.” While before that, the AFL-CIO had sought to protect wages of native-born workers by excluding immigrants. However, by making immigrants more vulnerable, such sanctions also helped put pressure on the wages of native-born workers. Also, in Japan while many employers hire immigrants (sometimes illegal ones), it is the local workers and the government that are against immigration.

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Appendix
Available only for authorised users
Footnotes
1
Here the crucial difference is that immigrants are guest workers, whom the firm can refuse to rehire, whereas domestic workers cannot subject to such “discrimination.” Thus, the firm rather chooses to hire “foreigners.” See the allegations on page 1, paragraph 1. In addition, many large Japanese firms negotiate with the (firm-specific) union over both employment and wages. Nevertheless, the firms still hire temporary workers (including immigrants), whose contracts are not negotiated with the union but determined by firms only. This to some extent provides justification for our setup in this section.
 
2
Two recent books present contrasting current immigration conditions in Europe and the United States (see Borjas 1999; Boeri et al. 2002)
 
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Metadata
Title
Temporary and Permanent Immigration Under Unionization
Author
Kenji Kondoh
Copyright Year
2017
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-10-0092-8_5