DP4274 The Demand for High-Skilled Workers and Immigration Policy

Author(s): Thomas Bauer , Astrid Kunze

Publication Date: February 2004

Keyword(s): migration , immigration policy , iza employer survey , high-skilled worker

JEL(s): F22 , J41

Programme Areas: Labour Economics

Link to this Page: www.cepr.org/pubs/dps/DP4274.asp

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.