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Alexander Kemnitz provides a unified framework for the analysis of the effects of immigration on wages, employment and welfare of the population of the target country in the presence of unemployment. Taking into account important features of European labor markets, he identifies conditions which make low skilled immigration beneficial for the host and scrutinizes the popular argument that immigration can serve to alleviate the demographic burden imposed by public pensions. Moreover, the author elaborates on the political viability of immigration policies and the challenges that education policy faces.