Estimating the Effect of Immigration on Wages
AbstractWe discuss approaches to estimating the effect that immigration has on wages of native workers which assume a three-level CES model, where immigrants and natives are allowed to be imperfect substitutes within an age-education cell, and predict the wage impact based on estimates of the elasticities of substitution at each level. We argue that this approach is sensitive to immigrants downgrading at arrival, and we illustrate the possible bias in estimating the elasticity of substitution between immigrants and natives.
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Bibliographic InfoPaper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1121.
Date of creation: Nov 2011
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Other versions of this item:
- Christian Dustmann & Ian Preston, 2011. "Estimating the Effect of Immigration on Wages," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2011026, Norface Research Programme on Migration, Department of Economics, University College London.
- NEP-ALL-2011-11-28 (All new papers)
- NEP-EDU-2011-11-28 (Education)
- NEP-LAB-2011-11-28 (Labour Economics)
- NEP-LMA-2011-11-28 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2011-11-28 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
- Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, SIPI Spa, issue 3, pages 363-407, July-Sept.
- Dustmann, Christian & Fabbri, Francesca, 2000.
"Language Proficiency and Labour Market Performance of Immigrants in the UK,"
IZA Discussion Papers
156, Institute for the Study of Labor (IZA).
- Christian Dustmann & Francesca Fabbri, 2003. "Language proficiency and labour market performance of immigrants in the UK," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 113(489), pages 695-717, 07.
- Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2487, C.E.P.R. Discussion Papers.
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