This study investigates the extent of labour market competition among native Dutch workers and ethnic minorities, using national survey of the SEO and the Population statistics of the CBS. Firstly, the direct effect of immigrants on local labour markets is considered. It is shown that ethnic minorities from developing countries have a positive effect on the earnings of high skilled natives and an adverse effect on the earning of low skilled native workers. On the other hand, ethnic minorities from EU-countries may have a negative effect on the earnings of high skilled natives and a positive effect on the earnings of low skilled natives. Secondly, the effect of an immigration flow by 5% of the total labour force on native earnings is examined along three scenarios using a general equilibrium model. It is found that immigration has a large negative effect on the wages of less skilled natives and a small positive effect on the wages of high skilled workers as new immigrants are less skilled than natives. In the case that immigration flow is mainly composed of high skilled workers, immigration has a relative large adverse effect on high skilled natives and a small negative effect on low skilled natives. In all cases, medium skilled natives are a little adversely affected by immigrants.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
This paper has been announced in the following NEP Reports:
Cited by: (explanations, 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.)