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Protective or counter-productive? labour market institutions and the effect of immigration on eu natives

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Author Info
Joshua D. Angrist
Adriana D. Kugler

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Abstract

Reduced labour market flexibility may protect some native workers from immigrant competition but can increase negative effects on equilibrium employment. This motivates an analysis of immigration effects interacted with institutions. OLS estimates for European countries show small, mostly negative immigration effects while an IV strategy based on immigrants from former Yugoslavia generates larger though mostly insignificant negative estimates. Specifications allowing interactions between immigration and measures of labour and product market rigidity are consistent with the view that reduced flexibility increases negative immigration effects. The estimates typically imply more native job losses in countries with restrictive institutions, especially restricted product markets. Copyright 2003 Royal Economic Society.

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 113 (2003)
Issue (Month): 488 (06)
Pages: F302-F331
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Handle: RePEc:ecj:econjl:v:113:y:2003:i:488:p:f302-f331

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. Giuseppe Nicoletti & Stefano Scarpetta & Olivier Boylaud, 2000. "Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation," OECD Economics Department Working Papers 226, OECD Economics Department. [Downloadable!]
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  4. Bentolila, Samuel & Bertola, Giuseppe, 1990. "Firing Costs and Labour Demand: How Bad Is Eurosclerosis?," Review of Economic Studies, Blackwell Publishing, vol. 57(3), pages 381-402, July. [Downloadable!] (restricted)
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  10. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March. [Downloadable!] (restricted)
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  11. Thomas Bauer & Klaus F. Zimmermann, 1999. "Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute for the Study of Labor (IZA). [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, 2002. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms," Economics Working Papers 651, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  2. Adriana Kugler & Giovanni Pica, 2003. "Effects of Employment Protection and Product Market Regulations on the Italian Labor Market," Economics Working Papers 722, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  3. Heather Antecol & Peter Kuhn & Stephen J. Trejo, 2006. "Assimilation via Prices or Quantities? Sources of Immigrant Earnings Growth in Australia, Canada and the United States," CReAM Discussion Paper Series 0603, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
  4. repec:ese:iserwp: is not listed on IDEAS
  5. Amin, Mohammad & Mattoo, Aaditya, 2005. "Does temporary migration have to be permanent?," Policy Research Working Paper Series 3582, The World Bank. [Downloadable!]
  6. Epstein, Gil S., 2002. "Informational Cascades and Decision to Migrate," IZA Discussion Papers 445, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Antecol, Heather & Kuhn, Peter & Trejo, Stephen J., 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Yu-Fu Chen & Michael Funke, 2005. "Product Market Competition, Investment and Employment-Abundant versus Job-Poor Growth: A Real Options Perspective," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  9. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2006. "The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis," IZA Discussion Papers 2044, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Hsiao-chuan Chang, 2003. "Do Immigrants Rob Jobs? A Case Study Of Australia," Department of Economics - Working Papers Series 883, The University of Melbourne. [Downloadable!]
  11. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2006. "The Fallacy of “Job Robbing”: A Meta-Analysis of Estimates of the Effect of Immigration on Employment," Tinbergen Institute Discussion Papers 06-050/3, Tinbergen Institute. [Downloadable!]
  12. Adriana Kugler adkugler@uh.edu & Giovanni Pica, 2005. "The Effects of Employment Protection on the Italian Labour Market," CSEF Working Papers 135, Centre for Studies in Economics and Finance (CSEF), University of Salerno, Italy. [Downloadable!]
  13. Kugler, Adriana & Pica, Giovanni, 2003. "The Effects Of Employment Protection and Product Market Regulations on The Italian Labor Market," Discussion Paper Series In Economics And Econometrics 0310, Economics Division, School of Social Sciences, University of Southampton. [Downloadable!]
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  14. Jens Hainmueller & Michael J. Hiscox, 2005. "Educated Preferences: Explaining Attitudes Toward Immigration in Europe," Others 0505013, EconWPA. [Downloadable!]
    Other versions:
  15. Wolf-Heimo Grieben, 2006. "Globalization with Labor Market Frictions and Non-Scale Growth," DEGIT Conference Papers c011_053, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
    Other versions:
  16. Adriana Kugler, 2004. "The Effect of Job Security Regulations on Labor Market Flexibility: Evidence from the Colombian Labor Market Reform," NBER Working Papers 10215, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Horst Entorf & Jochen Möbert, 2004. "The Demand for Illegal Migration and Market Outcomes," Darmstadt Discussion Papers in Economics 130, Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology). [Downloadable!]
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