Estimating the effects of immigration in one city
AbstractThis paper presents a new method of estimating the effects of immigration on the labor market that does not require variations in immigration across cities. With a two-stage CES model that aggregates immigrant groups by age cohorts and aggregates cohorts into effective labor, the econometric estimation and the interpretation of parameters are particularly straightforward. The paper uses data from Hong Kong to estimate the elasticities of complementarity associated with increased immigration. A simulation study indicates that a 40% increase in the stock of new immigrants will lower wages by no more than one percent.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Population Economics.
Volume (Year): 13 (2000)
Issue (Month): 1 ()
Note: Received: 13 August 1997/Accepted: 7 December 1998
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Find related papers by JEL classification:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
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- Jun Han & Wing Suen, 2011. "Age structure of the workforce in growing and declining industries: evidence from Hong Kong," Journal of Population Economics, Springer, vol. 24(1), pages 167-189, January.
- Strobl, Eric & Valfort, Marie-Anne, 2013.
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- Strobl, Eric & Valfort, Marie-Anne, 2012. "The Effect of Weather-Induced Internal Migration on Local Labor Markets: Evidence from Uganda," IZA Discussion Papers 6923, Institute for the Study of Labor (IZA).
- Ou, Dongshu & Kondo, Ayako, 2012. "Immigrants and Earnings Inequality: Evidence from Hong Kong," MPRA Paper 39673, University Library of Munich, Germany.
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