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Immigration and the Distribution of Wages in Austria

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  • 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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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, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria 2009-03, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  2. David Card, 2009. "Immigration and Inequality," CReAM Discussion Paper Series 0907, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Rudolf Winter-Ebmer, . "Do Immigrants Displace Young Native Workers: The Austrian Experience," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 011, Institute for Empirical Research in Economics - University of Zurich.
  4. David Card & Jesse Rothstein, 2006. "Racial Segregation and the Black-White Test Score Gap," NBER Working Papers 12078, National Bureau of Economic Research, Inc.
  5. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521845731.
  6. Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
  7. Hofer, Helmut & Huber, Peter, 2001. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Economics Series, Institute for Advanced Studies 97, Institute for Advanced Studies.
  8. Winter-Ebmer, Rudolf & Zweimüller, Josef, 1994. "Immigration and the Earnings of Young Native Workers," CEPR Discussion Papers, C.E.P.R. Discussion Papers 936, C.E.P.R. Discussion Papers.
  9. 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.
  10. Mathis Wagner, 2010. "The Heterogeneous Labor Market Effects of Immigration," CeRP Working Papers 93, Center for Research on Pensions and Welfare Policies, Turin (Italy).
  11. Christian Dustmann & Tommaso Frattini & Ian Preston, 2008. "The Effect of Immigration along the Distribution of Wages," CReAM Discussion Paper Series 0803, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  12. 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, University of Chicago Press, vol. 116(3), pages 381-422, 06.
  13. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 7(4), pages 371-91, October.
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