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Estimating the Impact of Immigration on Wages in Ireland

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Author Info

  • Barrett, Alan

    ()
    (ESRI, Dublin)

  • Bergin, Adele

    ()
    (ESRI, Dublin)

  • Kelly, Elish

    ()
    (Economic and Social Research Institute, Dublin)

Abstract

We estimate the impact of immigration on the wages of natives in Ireland applying the technique proposed by Borjas (2003). Under this method, the labour market is divided into a number of skill cells, where the cells are defined by groups with similar levels of experience and education (or experience and occupation). Regression analysis is then employed to assess whether the average wages of natives across skill cells is affected by the share of immigrants across cells. When the cells are based on education/experience, our results suggest a negative relationship between native wages and immigrant shares. However, the opposite appears to hold when the cells are based on occupation/experience. These contradictory findings suggest that care should be exercised when applying this method as inaccurate impressions of the impact of immigration on wages may arise.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4472.

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Length: 32 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: Economic and Social Review, 2011, 42 (1), 1-26
Handle: RePEc:iza:izadps:dp4472

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Keywords: Ireland; immigration; wages;

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  1. Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS.
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Cited by:
  1. Peter Mühlau, 2012. "Occupational and Earnings Mobility of Polish Migrants in Ireland in the Recession," The Institute for International Integration Studies Discussion Paper Series iiisdp413, IIIS.
  2. Mary J. Keeney, 2010. "A Quality Adjusted Measure of Labour Services for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 41(2), pages 149-172.

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