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The Effect of Immigration on Unskilled Native Workers: Evidence from a Natural Experiment

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  • Muhammad Asali

Abstract

This study exploits the natural experiment, provided by the start of the second intifada, to measure the effect of immigration on the wage and employment of unskilled native workers. It finds that immigration has no effect on the wage or employment of unskilled Jewish workers. The wage and employment of the least‐skilled Israeli Arab workers (with zero to five years of schooling) are adversely affected by immigration. The slightly more skilled Arab workers (with six to 11 years of schooling), in contrast, are positively affected by immigration, suggesting a complementarity effect with this group. Different explanations are proposed.

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  • Muhammad Asali, 2013. "The Effect of Immigration on Unskilled Native Workers: Evidence from a Natural Experiment," Southern Economic Journal, John Wiley & Sons, vol. 80(2), pages 345-365, October.
    • Handle: RePEc:wly:soecon:v:80:y:2013:i:2:p:345-365
    DOI: 10.4284/0038-4038-2011.282
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