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Do Immigrants Reduce Natives' Wages? Evidence from Germany

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Author Info
Thomas Bauer () (IZA, University of Bonn, & CEPR, London)

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Abstract

This paper investigates the effects of immigration on the wages of native workers in Germany. The analysis differentiates native and foreign workers according to their occupational status. The estimation of a translog production using 1990 cross section data reveals mixed results regarding the production relationship between different native and foreign groups. However, the effects of immigration on the wages of natives are numerically very small. Separability tests show that the use of an aggregate index for foreign labor and the treatment of natives and foreigners as similar inputs is not appropriate.

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File URL: ftp://snde.rutgers.edu/Rutgers/wp/1998-02.pdf
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Publisher Info
Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 199802.

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Date of creation: 05 Mar 1998
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Handle: RePEc:rut:rutres:199802

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Related research
Keywords: immigration; separability; substitutability; wages;

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

References listed on IDEAS
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  1. John P. Haisken-DeNew & Klaus F. Zimmermann, . "Wage and Mobility Effects of Trade and Migration," Working Papers _001, SELAPO Center for Human Resources. [Downloadable!]
    Other versions:
  2. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November. [Downloadable!] (restricted)
  3. Gang, Ira N & Rivera-Batiz, Francisco L, 1994. "Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," Journal of Population Economics, Springer, vol. 7(2), pages 157-75.
  4. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November. [Downloadable!] (restricted)
  5. George J. Borjas, 1987. "Immigrants, Minorities, and Labor Market Competition," NBER Working Papers 2028, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December. [Downloadable!] (restricted)
  7. George J. Borjas, 1987. "Immigrants, minorities, and labor market competition," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 40(3), pages 382-392, April.
  8. Denny, Michael & Fuss, Melvyn A, 1977. "The Use of Approximation Analysis to Test for Separability and the Existence of Consistent Aggregates," American Economic Review, American Economic Association, vol. 67(3), pages 404-18, June. [Downloadable!] (restricted)
  9. Sato, Ryuzo & Koizumi, Tetsunori, 1973. "On the Elasticities of Substitution and Complementarity," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 44-56, March. [Downloadable!] (restricted)
  10. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer, vol. 7(2), pages 177-92.
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Cited by:
(explanations, 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.)

  1. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Population Studies Centre Discussion Papers dp-47, University of Waikato, Population Studies Centre. [Downloadable!]
    Other versions:
  2. Herbert Brücker, 2003. "Die Arbeitsmarkteffekte der Ost-West-Migration: theoretische Überlegungen, Simulationen und empirische Befunde," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(4), pages 579-593.
  3. Longhi, Simonetta & Nijkamp, Peter & Poot, Jacques, 2008. "Meta-Analysis of Empirical Evidence on the Labour Market Impacts of Immigration," IZA Discussion Papers 3418, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement," IZA Discussion Papers 1600, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-11-21.

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