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Immigration and the Distribution of Wages in Austria

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Author Info

  • Thomas Horvath

    ()
    (Austrian Institute of Economic Research (WIFO))

Abstract

Using detailed micro data on earnings and employment, I analyse the effects of immigration on the wage distribution of native male workers in Austria. I find that immigration has heterogeneous effects on wages, differing by type of work as well as the wage level. While there are small, but insignificant, negative effects for blue collar workers at the lower end of the wage distribution, there are positive effects on wages at higher percentiles. For white collar workers, positive effects occur at most percentiles. The estimated effects of immigration are relatively small in size and not significant for most workers. Overall, it seems that most of the potentially adverse effects of immigration on natives’ wages are offset by complementarities stemming from immigration of workers with different skill levels.

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File URL: http://www.eaco.eu/documents/issue/horvath_t.pdf
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Bibliographic Info

Article provided by European Association Comenius - EACO in its journal DANUBE: Law and Economics Review.

Volume (Year): (2012)
Issue (Month): 3 (March)
Pages: 55-69

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Handle: RePEc:cmn:journl:y:2012:i:3:p:55-69

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Web page: http://www.eaco.eu

Related research

Keywords: Immigration; Labour Market; Native Male Workers; Wage Distribution;

References

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  1. Josef Zweimüller & Rudolf Winter-Ebmer & Rafael Lalive & Andreas Kuhn & Jean-Philippe Wuellrich & Oliver Ruf & Simon Büchi, 2009. "Austrian Social Security Database," NRN working papers 2009-03, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    • Josef Zweimüller & Rudolf Winter-Ebmer & Rafael Lalive & Andreas Kuhn & Jean-Philippe Wuellrich & Oliver Ruf & Simon Büchi, 2009. "Austrian social security database," IEW - Working Papers 410, Institute for Empirical Research in Economics - University of Zurich.
  2. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
  3. Rudolf Winter-Ebmer, . "Do Immigrants Displace Young Native Workers: The Austrian Experience," IEW - Working Papers 011, Institute for Empirical Research in Economics - University of Zurich.
  4. David Card, 2009. "Immigration and Inequality," NBER Working Papers 14683, National Bureau of Economic Research, Inc.
  5. David Card & Jesse Rothstein, 2005. "Racial Segregation and the Black-White Test Score Gap," Working Papers 879, Princeton University, Department of Economics, Industrial Relations Section..
  6. Patricia Cortes, 2008. "The Effect of Low-Skilled Immigration on U.S. Prices: Evidence from CPI Data," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 381-422, 06.
  7. Winter-Ebmer, Rudolf & Zweimuller, Josef, 1996. "Immigration and the Earnings of Young Native Workers," Oxford Economic Papers, Oxford University Press, vol. 48(3), pages 473-91, July.
  8. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The Labour Market Impact of Immigration," CReAM Discussion Paper Series 0811, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  9. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, October.
  10. Helmut Hofer & Peter Huber, 2003. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Empirica, Springer, vol. 30(2), pages 107-125, June.
  11. Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 145-173.
  12. Mathis Wagner, 2010. "The Heterogeneous Labor Market Effects of Immigration," CeRP Working Papers 93, Center for Research on Pensions and Welfare Policies, Turin (Italy).
  13. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
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