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Estimating the Effect of Immigration on Wages

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Author Info

  • Christian Dustmann

    ()
    (UCL and CReAM)

  • Ian Preston

    ()
    (UCL and CReAM)

Abstract

We discuss approaches to estimating the effect that immigration has on wages of native workers which assume a three-level CES model, where immigrants and natives are allowed to be imperfect substitutes within an age-education cell, and predict the wage impact based on estimates of the elasticities of substitution at each level. We argue that this approach is sensitive to immigrants downgrading at arrival, and we illustrate the possible bias in estimating the elasticity of substitution between immigrants and natives.

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Bibliographic Info

Paper provided by Norface Research Programme on Migration, Department of Economics, University College London in its series Norface Discussion Paper Series with number 2011026.

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Date of creation: Dec 2011
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Handle: RePEc:nor:wpaper:2011026

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  1. Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
  2. Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," CEPR Discussion Papers 2487, C.E.P.R. Discussion Papers.
  3. 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.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. "British workers hit hard"
    by chris dillow in Stumbling and Mumbling on 2014-04-22 13:28:12

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