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What Happens to the Careers of European Workers When Immigrants "Take Their Jobs"?

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Author Info

  • Cattaneo, Cristina

    ()
    (Fondazione Eni Enrico Mattei (FEEM))

  • Fiorio, Carlo V.

    ()
    (University of Milan)

  • Peri, Giovanni

    ()
    (University of California, Davis)

Abstract

In this paper we use a dataset that follows a representative sample of native Europeans, resident of 11 countries, over the period 1995-2001, in order to identify the effect of inflows of immigrants on their career, employment, location and wage. We use the 1991 distribution of immigrants by nationality across European labor markets to construct an imputed inflow of the foreign-born population that is exogenous to local demand shocks. We also control for a series of fixed effects that absorb individual, country-year and sector-year effects. We find that native Europeans are more likely to upgrade their occupation to one associated with higher skills and better pay, when a larger number of immigrants enter their labor market. They are also more likely to start a self-employment activity. As a consequence of this upward mobility their income increases or stays the same in response to immigration. We find no evidence of an increased likelihood to leave employment or to leave their region of residence. These effects take place within 2 years and some persist over 4 years. Hence it appears that immigrants push native European workers on a faster career track rather than reducing their employment opportunities.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7282.

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Length: 39 pages
Date of creation: Mar 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7282

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Keywords: mobility; job upgrading; immigrants; self-employment; Europe;

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References

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  1. Giovanni Peri & Chad Sparber, 2008. "Highly-Educated Immigrants and Native Occupational Choice," CReAM Discussion Paper Series 0813, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. D'Amuri, Francesco & Ottaviano, Gianmarco I.P. & Peri, Giovanni, 2010. "The labor market impact of immigration in Western Germany in the 1990s," European Economic Review, Elsevier, Elsevier, vol. 54(4), pages 550-570, May.
  3. Andri Chassamboulli & Theodore Palivos, 2014. "A Search‐Equilibrium Approach To The Effects Of Immigration On Labor Market Outcomes," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55, pages 111-129, 02.
  4. Mette Foged & Giovanni Peri, 2013. "Immigrants and Native Workers: New Analysis Using Longitudinal Employer-Employee Data," NBER Working Papers 19315, National Bureau of Economic Research, Inc.
  5. 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, American Economic Association, vol. 3(3), pages 88-123, July.
  6. Giovanni Peri & Chad Sparber, 2008. "Task Specialization, Immigration, and Wages," CReAM Discussion Paper Series 0802, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  7. George J. Borjas, 2006. "Native Internal Migration and the Labor Market Impact of Immigration," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  8. David Card, 2009. "Immigration and Inequality," CReAM Discussion Paper Series 0907, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  9. Elias, Peter & McKnight, Abigail, 2001. "Skill Measurement in Official Statistics: Recent Developments in the UK and the Rest of Europe," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 508-40, July.
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  11. Ethan Lewis, 2011. "Immigration, Skill Mix, and Capital Skill Complementarity," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 1029-1069.
  12. Sari Pekkala Kerr & William R. Kerr, 2013. "Immigration and Employer Transitions for STEM Workers," American Economic Review, American Economic Association, American Economic Association, vol. 103(3), pages 193-97, May.
  13. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, Springer, vol. 27(1), pages 63-90.
  14. Cohen-Goldner, Sarit & Paserman, Marco Daniele, 2004. "The Dynamic Impact of Immigration on Natives' Labour Market Outcomes: Evidence from Israel," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4640, C.E.P.R. Discussion Papers.
  15. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(4), pages 1335-1374, November.
  16. 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.
  17. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(4), pages 653-77, October.
  18. Timothy Dunne & Lucia Foster & John Haltiwanger & Kenneth R. Troske, 2004. "Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 22(2), pages 397-430, April.
  19. Bartel, Ann P & Sicherman, Nachum, 1998. "Technological Change and the Skill Acquisition of Young Workers," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(4), pages 718-55, October.
  20. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2012. "The Short- and Long-Term Career Effects of Graduating in a Recession," American Economic Journal: Applied Economics, American Economic Association, American Economic Association, vol. 4(1), pages 1-29, January.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Immigration, class & ideology
    by chris dillow in Stumbling and Mumbling on 2013-06-29 12:52:28
  2. Cutting waste
    by chris dillow in Stumbling and Mumbling on 2013-07-16 13:32:19
  3. Labour's cost of living problem
    by chris dillow in Stumbling and Mumbling on 2013-08-24 11:11:51
  4. Equality, growth & policy
    by chris dillow in Stumbling and Mumbling on 2014-03-05 13:13:12
  5. "British workers hit hard"
    by chris dillow in Stumbling and Mumbling on 2014-04-22 13:28:12
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Cited by:
  1. Barone, Guglielmo & D'Ignazio, Alessio & de Blasio, Guido & Naticchioni, Paolo, 2014. "Mr. Rossi, Mr. Hu and Politics: The Role of Immigration in Shaping Natives' Political Preferences," IZA Discussion Papers 8228, Institute for the Study of Labor (IZA).
  2. Mette Foged & Giovanni Peri, 2013. "Immigrants and Native Workers: New Analysis Using Longitudinal Employer-Employee Data," NBER Working Papers 19315, National Bureau of Economic Research, Inc.

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