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Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity

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Author Info
Gang, Ira N
Rivera-Batiz, Francisco L

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Abstract

This paper examines the impact of immigrants on the income of various groups of resident workers in the United States and Europe. Our approach features the use of a production technology incorporating education, experience, and unskilled labor as inputs. This contrasts with the assumption used in earlier studies that native-born and immigrant labor are distinct inputs into production. We find that in both United States and European production, education, unskilled labor and experience are complementary inputs. Based on these results, simulations of the impact of immigration on residents are carried out. The absolute magnitude of these effects is found to be very small.

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

Volume (Year): 7 (1994)
Issue (Month): 2 ()
Pages: 157-75
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Handle: RePEc:spr:jopoec:v:7:y:1994:i:2:p:157-75

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  1. Matloob Piracha & Roger Vickerman, 2002. "Immigration, Labour Mobility and EU Enlargement," Studies in Economics 0209, Department of Economics, University of Kent. [Downloadable!]
  2. Gil S. Epstein & Ira N Gang, 2006. "Migrants, Ethnicity and Strategic Assimilation," Departmental Working Papers 200630, Rutgers University, Department of Economics. [Downloadable!]
  3. Fröhlich, Markus & Puhani, Patrick A, 2002. "Immigration and Heterogeneous Labour in Western Germany: A Labour Market Classification Based on Nonparametric Estimation," CEPR Discussion Papers 3158, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Mohamed Jellal & François-Charles Wolff, 2003. "International migration and human capital formation," Economics Bulletin, Economics Bulletin, vol. 15(10), pages 1-8. [Downloadable!]
  5. Theodore Palivos & Chong K. Yip, 2007. "Illegal immigration in a heterogeneous society," Discussion Paper Series 2007_02, Department of Economics, University of Macedonia, revised Dec 2007. [Downloadable!]
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  6. Vickerman, Roger, 2002. "Economic issues in a community immigration policy: the regional dimension," ERSA conference papers ersa02p383, European Regional Science Association. [Downloadable!]
  7. Gil Epstein & Shmuel Nitzan, 2006. "The struggle over migration policy," Journal of Population Economics, Springer, vol. 19(4), pages 703-723, October. [Downloadable!] (restricted)
    Other versions:
  8. Epstein, Gil S. & Gang, Ira N., 2008. "Ethnicity, Assimilation and Harassment in the Labor Market," IZA Discussion Papers 3591, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Thomas Bauer, 1998. "Do Immigrants Reduce Natives' Wages? Evidence from Germany," Departmental Working Papers 199802, Rutgers University, Department of Economics. [Downloadable!]
  10. Gottlieb, Daniel, 2002. "The Effect of Migrant Workers on Employment,Real Wages and Inequality The Case of Israel -1995 to 2000," MPRA Paper 3148, University Library of Munich, Germany. [Downloadable!]
  11. Bauer, Thomas & Epstein, Gil & Gang, Ira N., 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," IZA Discussion Papers 551, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. Peter E. Robertson, 2007. "Reflections on Australia’s Skilled Migration Policy," Discussion Papers 2007-22, School of Economics, The University of New South Wales. [Downloadable!]
  13. Sari Pekkala, 2005. "Economic Impacts of Immigration: A Survey," Discussion Papers 362, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  14. Axel Heitmueller, 2003. "Co-ordination Failures in Network Migration," CERT Discussion Papers 0302, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
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  15. Jens Hainmueller & Michael J. Hiscox, 2005. "Educated Preferences: Explaining Attitudes Toward Immigration in Europe," Others 0505013, EconWPA. [Downloadable!]
    Other versions:
  16. Epstein, Gil S. & Gang, Ira N., 2004. "Ethnic Networks and International Trade," IZA Discussion Papers 1232, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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