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Immigration and Distribution of Wages in Austria

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  • Gerard Thomas Horvath

Abstract

Using detailed micro data on earnings and employment, I analyze the effects of immigration on the wage distribution of native male workers in Austria. I find that immigration has heterogeneous effects on wages, differing by type of work as well as the wage level. While there are small , but insignificant, negative effects for blue collar workers at the lower end of the wage distribution there are positive effects on wages at higher percentiles. For white collar workers positive effects occur at most percentiles. The estimated effects of immigration are relatively small in size and not significant for most workers. Overall it seems that most of potentially adverse effects of immigration on natives' wages are offset by complementarities stemming from immigration of workers with different skill levels.

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Bibliographic Info

Paper provided by The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria in its series NRN working papers with number 2011-09.

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Length: 23 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:jku:nrnwps:2011_09

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Keywords: Immigration; Labor market; Wage distribution;

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  1. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521608275.
  2. Josef Zweimüller & Rudolf Winter-Ebmer & Rafael Lalive & Andreas Kuhn & Jean-Philippe Wuellrich & Oliver Ruf & Simon Büchi, 2009. "Austrian social security database," IEW - Working Papers 410, Institute for Empirical Research in Economics - University of Zurich.
  3. Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 145-173.
  4. Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
  5. Rudolf Winter-Ebmer & Josef Zweimüller, 1999. "Do immigrants displace young native workers: The Austrian experience," Journal of Population Economics, Springer, Springer, vol. 12(2), pages 327-340.
  6. Hofer, Helmut & Huber, Peter, 2001. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Economics Series, Institute for Advanced Studies 97, Institute for Advanced Studies.
  7. Marco Manacorda & Alan Manning & Jonathan Wadsworth, 2006. "The Impact of Immigration on the Structure of Male Wages: Theory and Evidence from Britain," CReAM Discussion Paper Series 0608, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  8. Mathis Wagner, 2010. "The Heterogeneous Labor Market Effects of Immigration," CeRP Working Papers 93, Center for Research on Pensions and Welfare Policies, Turin (Italy).
  9. Dustmann, Christian & Francesca Fabbri & Ian Preston, 2003. "The Local Labour Market Effects of Immigration in the UK," Royal Economic Society Annual Conference 2003, Royal Economic Society 70, Royal Economic Society.
  10. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 24(3), pages 478-495, Autumn.
  11. David Card & Jesse Rothstein, 2005. "Racial Segregation and the Black-White Test Score Gap," Working Papers, Princeton University, Department of Economics, Center for Economic Policy Studies. 93, Princeton University, Department of Economics, Center for Economic Policy Studies..
  12. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 20(4), pages 518-29, October.
  13. Winter-Ebmer, Rudolf & Zweimuller, Josef, 1996. "Immigration and the Earnings of Young Native Workers," Oxford Economic Papers, Oxford University Press, vol. 48(3), pages 473-91, July.
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