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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. 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:
  2. Ira N. Gang & Thomas Bauer & Gil S. Epstein, 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," Departmental Working Papers 200216, Rutgers University, Department of Economics. [Downloadable!]
    Other versions:
  3. 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!]
    Other versions:
  4. 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:
  5. 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!]
  6. Vickerman, Roger, 2002. "Economic issues in a community immigration policy: the regional dimension," ERSA conference papers ersa02p383, European Regional Science Association. [Downloadable!]
  7. Sari Pekkala, 2005. "Economic Impacts of Immigration: A Survey," VATT Discussion Papers 362, Government Institute for Economic Research (VATT). [Downloadable!]
  8. Thomas Bauer, 1998. "Do Immigrants Reduce Natives' Wages? Evidence from Germany," Departmental Working Papers 199802, Rutgers University, Department of Economics. [Downloadable!]
  9. 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!]
  10. Axel Heitmueller, 2003. "Co-ordination Failures in Network Migration," CERT Discussion Papers 0302, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
    Other versions:
  11. Mohamed Jellal & François-Charles Wolff, 2003. "International migration and human capital formation," Economics Bulletin, Economics Bulletin, vol. 15(10), pages 1-8. [Downloadable!]
  12. Matloob Piracha & Roger Vickerman, 2002. "Immigration, Labour Mobility and EU Enlargement," Studies in Economics 0209, Department of Economics, University of Kent. [Downloadable!]
  13. Gil S. Epstein & Ira N Gang, 2006. "Migrants, Ethnicity and Strategic Assimilation," Departmental Working Papers 200630, Rutgers University, Department of Economics. [Downloadable!]
  14. Jens Hainmueller & Michael J. Hiscox, 2005. "Educated Preferences: Explaining Attitudes Toward Immigration in Europe," Others 0505013, EconWPA. [Downloadable!]
    Other versions:
  15. 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!]
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This page was last updated on 2008-10-2.

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