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The impact of immigration on the well-being of natives

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  • Akay, Alpaslan
  • Constant, Amelie
  • Giulietti, Corrado

Abstract

Combining data from the German Socio-Economic Panel for 1998–2009 with local labor market information, this is the first paper to investigate how the spatial concentration of immigrants affects the life satisfaction of the native Germans. Our results show a positive and robust effect of immigration on natives’ well-being, which is not driven by local labor market characteristics. Immigration has only a weak impact on the subjective well-being of immigrant groups, meanwhile. We also examine potential threats to causality and conclude that our findings are not driven by selectivity and reverse causality. Specifically, natives are not crowded out by immigrants and the sorting of immigrants to regions with higher native happiness is negligible. We further find that the positive effect of immigration on natives’ life satisfaction is a function of the assimilation of immigrants in the region. Immigration's well-being effect is higher in regions with intermediate assimilation levels and is essentially zero in regions with no or complete assimilation.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 103 (2014)
Issue (Month): C ()
Pages: 72-92

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Handle: RePEc:eee:jeborg:v:103:y:2014:i:c:p:72-92

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Keywords: Subjective well-being; Impact of immigration; Local labor markets; Assimilation;

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Cited by:
  1. Lucinda Platt & Gundi Knies & Alita Nandi, 2014. "Life Satisfaction, Ethnicity and Neighbourhoods: Is There an Effect of Neighbourhood Ethnic Composition on Life Satisfaction?," CReAM Discussion Paper Series 1407, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Akay, Alpaslan & Constant, Amelie & Giulietti, Corrado, 2014. "The impact of immigration on the well-being of natives," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 103(C), pages 72-92.
  3. Osea Giuntella, 2014. "Immigration and Job Disamenities," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 20-26, 07.
  4. Osea Giuntella & Fabrizio Mazzonna, 2014. "Do Immigrants Bring Good Health?," SOEPpapers on Multidisciplinary Panel Data Research 653, DIW Berlin, The German Socio-Economic Panel (SOEP).
  5. Betz, William & Simpson, Nicole B., 2013. "The Effects of International Migration on the Well-Being of Native Populations in Europe," IZA Discussion Papers 7368, Institute for the Study of Labor (IZA).
  6. Artjoms Ivlevs, 2014. "Happy moves? Assessing the impact of subjective well-being on the emigration decision," Working Papers 20141402, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  7. Constant, Amelie F. & Schüller, Simone & Zimmermann, Klaus F., 2013. "Ethnic Spatial Dispersion and Immigrant Identity," IZA Discussion Papers 7868, Institute for the Study of Labor (IZA).

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