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Estimating the effects of immigration in one city

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  • Wing Suen

    ()
    (School of Economics and Finance, The University of Hong Kong, Pokfulam Road, Hong Kong)

Abstract

This 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 Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 13 (2000)
Issue (Month): 1 ()
Pages: 99-112

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Handle: RePEc:spr:jopoec:v:13:y:2000:i:1:p:99-112

Note: Received: 13 August 1997/Accepted: 7 December 1998
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Related research

Keywords: Immigrant-cohort size; two-stage CES model; elasticity of complementarity;

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Cited by:
  1. 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.
  2. Strobl, Eric & Valfort, Marie-Anne, 2013. "The effect of weather-induced internal migration on local labor markets : evidence from Uganda," Policy Research Working Paper Series 6600, The World Bank.
  3. 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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