The impact of immigration on wages in the Czech Republic

This paper examines the impact of immigration on the labour market. The first part summarizes the theoretical aspects of immigration and its impact on wages and employment. It compares two different approaches to research immigration, the aggregate labour market model and the regional labour market model. Following these approaches, the econometric models are constructed. The empirical section tries to verify the assumption that immigration has negative impact on wages. The data used in regression are valid for the Czech Republic for the period of 2004-2010. The tested assumption was rejected on basis of the model results. The impact of immigration on the average wages in the Czech Republic was positive according to the aggregate labour market model