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Mass Migration to Israel and Natives' Transitions from Employment

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Author Info

  • Cohen-Goldner, Sarit

    ()
    (Bar-Ilan University)

  • Paserman, Daniele

    ()
    (Boston University)

Abstract

This paper studies the impact of mass migration from the Former Soviet Union to Israel on natives’ probability of moving from employment to non-employment in a segmented labor market that is defined by various combinations of schooling, occupation, industry, district of residence and experience. We find that the share of immigrants in a given labor market segment is generally positively associated with the probability of natives to move from employment in that segment to non-employment, both for males and females. However, when segment fixed-effects are added, this effect is substantially reduced for males, and disappears or is even reversed for females. We conclude that immigrants are negatively selected into occupations with high turnover and that natives were not facing higher probability to exit employment due to immigrants’ presence in a certain occupation. Allowing the effect to vary across natives with different levels of education and experience reveals that young men, educated men and workers in the private sector are adversely affected by the presence of immigrants.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1319.

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Length: 35 pages
Date of creation: Sep 2004
Date of revision:
Publication status: published in: Industrial and Labor Relations Review, 2006, 59 (4), 630-652
Handle: RePEc:iza:izadps:dp1319

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Keywords: segmented labor markets; labor supply; labor demand; immigration; employment transitions;

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References

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  1. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
  2. David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
  3. Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc.
  4. Robert J. LaLonde & Robert H. Topel, 1991. "Labor Market Adjustments to Increased Immigration," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 167-199 National Bureau of Economic Research, Inc.
  5. Rachel M. Friedberg, 2001. "The Impact Of Mass Migration On The Israeli Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1373-1408, November.
  6. Sarit Cohen & Chang-Tai Hsieh, 2001. "Macroeconomic and Labor Market Impact of Russian Immigration in Israel," Working Papers 2001-11, Department of Economics, Bar-Ilan University.
  7. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  8. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1996. "Searching for the Effect of Immigration on the Labor Market," NBER Working Papers 5454, National Bureau of Economic Research, Inc.
  9. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 201-234 National Bureau of Economic Research, Inc.
  10. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, May.
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Cited by:
  1. Cohen-Goldner, Sarit & Paserman, M. Daniele, 2011. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," European Economic Review, Elsevier, vol. 55(8), pages 1027-1045.
  2. Eric D. Gould & Victor Lavy & M. Daniele Paserman, 2009. "Does Immigration Affect the Long-Term Educational Outcomes of Natives? Quasi-Experimental Evidence," Economic Journal, Royal Economic Society, vol. 119(540), pages 1243-1269, October.

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