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Local Labor Supply Responses to Immigration

Author

Listed:
  • Ximena Del Carpio
  • Çağlar Özden
  • Mauro Testaverde
  • Mathis Wagner

Abstract

How natives adjust is central to an understanding of the impact of immigration in destination countries. Using detailed labor force data for Malaysia for 1990–2010, we provide estimates of native responses to immigration on multiple extensive margins and rare evidence for a developing country. Instrumental variable estimates show that increased immigration to a state causes substantial internal inward migration, consistent with the fact that immigration increases the demand for native workers. Relocating Malaysian workers are accompanied by their spouses (three-quarters of whom are housewives) and children who attend school. We find that these effects are concentrated among middle- and lower-skilled Malaysians.

Suggested Citation

  • Ximena Del Carpio & Çağlar Özden & Mauro Testaverde & Mathis Wagner, 2015. "Local Labor Supply Responses to Immigration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 493-521, April.
    • Handle: RePEc:bla:scandj:v:117:y:2015:i:2:p:493-521
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    File URL: http://hdl.handle.net/10.1111/sjoe.12099
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    Citations

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    Cited by:

    1. Leonardo Bonilla-Mejía & Leonardo Fabio Morales & Didier Hermida-Giraldo & Luz A. Flórez, 2020. "The Labor Market of Immigrants and Non-Immigrants Evidence from the Venezuelan Refugee Crisis," Borradores de Economia 1119, Banco de la Republica de Colombia.
    2. Michael A. Clemens, 2022. "The effect of seasonal work visas on native employment: Evidence from US farm work in the Great Recession," Review of International Economics, Wiley Blackwell, vol. 30(5), pages 1348-1374, November.
    3. Zainab Ali Ahmad & Kenneth Simler & Soonhwa Yi, 2020. "Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia," World Bank Publications - Reports 33913, The World Bank Group.
    4. Nelly Elmallakh & Jackline Wahba, 2023. "Syrian Refugees and the Migration Dynamics of Jordanians: Moving In or Moving Out?," Economic Development and Cultural Change, University of Chicago Press, vol. 71(4), pages 1283-1330.
    5. Ana María Tribín-Uribe & Achyuta Adhvaryu & Cesar Anzola-Bravo & Oscar Ávila-Montealegre & Leonardo Bonilla-Mejía & Juan Carlos Castro-Fernández & Luz A. Flórez & Ánderson Grajales-Olarte & Alexander , 2020. "Migración desde Venezuela en Colombia: caracterización del fenómeno y análisis de los efectos macroeconómicos," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, issue 97, pages 1-74, October.
    6. Clemens, Michael A., 2017. "The Effect of Occupational Visas on Native Employment: Evidence from Labor Supply to Farm Jobs in the Great Recession," IZA Discussion Papers 10492, Institute of Labor Economics (IZA).
    7. Caglar Ozden & Mauro Testaverde & Mathis Wagner, 2018. "How and Why Does Immigration Affect Crime? Evidence from Malaysia," The World Bank Economic Review, World Bank, vol. 32(1), pages 183-202.
    8. Escarce, José J. & Rocco, Lorenzo, 2021. "Effect of immigration on depression among older natives in Western Europe," The Journal of the Economics of Ageing, Elsevier, vol. 20(C).
    9. Del Carpio,Ximena Vanessa & Wagner,Mathis Christoph, 2015. "The impact of Syrian refugees on the Turkish labor market," Policy Research Working Paper Series 7402, The World Bank.
    10. Michele Tuccio, 2017. "Determinants of Intra-ASEAN Migration," Asian Development Review, MIT Press, vol. 34(1), pages 144-166, March.
    11. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    12. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2020. "The Effect of Immigration on Labor Market Transitions of Native-Born Unemployed in the United States," Journal of Labor Research, Springer, vol. 41(3), pages 295-331, September.
    13. Escarce, José J. & Rocco, Lorenzo, 2018. "Immigration and the Health of Older Natives in Western Europe," GLO Discussion Paper Series 228, Global Labor Organization (GLO).
    14. Christoph Basten & Michael Siegenthaler, 2019. "Do Immigrants Take or Create Residents’ Jobs? Evidence from Free Movement of Workers in Switzerland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(3), pages 994-1019, July.

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