Immigration and the Distribution of Incomes
AbstractWe review research on the impact of immigration on income distribution. We discuss routes through which immigration can affect income distribution in the host and source countries, including compositional effects and effects on native incomes. Immigration may affect the composition of skills among the residents of a country. Moreover, immigrants can, by changing relative factor supplies, affect native wage and employment rates and the return to capital. We then provide evidence on the level and recent increases in immigration to OECD countries and on the distribution of native and immigrant educational attainment. We next provide a decomposition of 1979-2009 changes in US wage inequality, highlighting the effects of immigration on workforce composition. We then consider the economic theory of the impact of immigration on income distribution, emphasizing labor market substitution and complementarity between natives and immigrants. Further, by changing job opportunities or child care availability, immigrants can affect family, as well as individual, income distribution. We review research methodologies used to estimate the impact of immigration on the native income distribution. These include the structural approach (estimating substitution and complementarity among factors of production, including capital and labor force groups) as well as the natural experiment approach (seeking exogenous sources of variation in immigration) to studying the labor market. We then discuss evidence on these questions for Austria, Britain, France, Germany, Hong Kong, Israel, Portugal, Spain and the United States, as well as the impact of emigration on source country income distribution.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6921.
Length: 68 pages
Date of creation: Oct 2012
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-27 (All new papers)
- NEP-LTV-2012-10-27 (Unemployment, Inequality & Poverty)
- NEP-MIG-2012-10-27 (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.:
- Cohen-Goldner, Sarit & Paserman, Marco Daniele, 2004.
"The Dynamic Impact of Immigration on Natives' Labour Market Outcomes: Evidence from Israel,"
CEPR Discussion Papers
4640, C.E.P.R. Discussion Papers.
- 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.
- M. Daniele Paserman & Sarit Cohen-Goldner, 2010. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," Boston University - Department of Economics - Working Papers Series WP2010-046, Boston University - Department of Economics.
- Cohen-Goldner, Sarit & Paserman, Daniele, 2004. "The Dynamic Impact of Immigration on Natives' Labor Market Outcomes: Evidence from Israel," IZA Discussion Papers 1315, Institute for the Study of Labor (IZA).
- Elsner, Benjamin, 2011.
"Emigration and Wages: The EU Enlargement Experiment,"
IZA Discussion Papers
6111, Institute for the Study of Labor (IZA).
- Benjamin Elsner, 2011. "Emigration and Wages: The EU Enlargement Experiment," Trinity Economics Papers tep1311, Trinity College Dublin, Department of Economics.
- Elsner, Benjamin, 2011. "Emigration and Wages: The EU Enlargement Experiment," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48716, Verein für Socialpolitik / German Economic Association.
- Benjamin Elsner, 2011. "Emigration and Wages: The EU Enlargement Experiment," Working Papers 2011.76, Fondazione Eni Enrico Mattei.
- Benjamin Elsner, 2011. "Emigration and Wages: The EU Enlargement Experiment," The Institute for International Integration Studies Discussion Paper Series iiisdp379, IIIS.
- Devesh Kapur & John McHale, 2009. "International migration and the world income distribution," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(8), pages 1102-1110.
- Abdurrahman Aydemir & George J. Borjas, 2010.
"Attenuation Bias in Measuring the Wage Impact of Immigration,"
NBER Working Papers
16229, National Bureau of Economic Research, Inc.
- Abdurrahman Aydemir & George J. Borjas, 2011. "Attenuation Bias in Measuring the Wage Impact of Immigration," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 69-113, 01.
- Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
- Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
- Francine D Blau & Lawrence M Kahn & Kerry L Papps, 2011. "Gender, Source Country Characteristics, and Labor Market Assimilation among Immigrants," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 43-58, February.
- Guillermina Jasso & Mark Rosensweig & James P. Smith, 2003. "The Earnings of US immigrants," Labor and Demography 0312007, EconWPA.
- Patricia Cort�s & Jos� Tessada, 2011. "Low-Skilled Immigration and the Labor Supply of Highly Skilled Women," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 88-123, July.
- Jason Gagnon, 2011. "“Stay With Us?” The Impact of Emigration on Wages in Honduras," OECD Development Centre Working Papers 300, OECD Publishing.
- Christoph Basten & Michael Siegenthaler, 2013. "Do immigrants take or create residents’ jobs? Quasi-experimental evidence from Switzerland," KOF Working papers 13-335, KOF Swiss Economic Institute, ETH Zurich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.