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A Meta-Analytic Assessment of the Effect of Immigration on Wages

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Author Info
Simonetta Longhi (Free University, Amsterdam, The Netherlands)
Peter Nijkamp (Free University, Amsterdam, The Netherlands)
Jacques Poot () (University of Waikato)

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Abstract

In our increasingly interconnected and open world, international migration is becoming an important socio-economic phenomenon for many countries. Since the early 1980s, many studies have been undertaken of the impact of immigration on host labour markets. Borjas (2003) noted that the estimated effect of immigration on the wage of native workers varies widely from study to study and sometimes even within the same study. In addition, these effects cluster around zero. Such a small effect is a rather surprising outcome, given that in a closed competitive labour market an increase in labour supply may be expected to exert a downward pressure on wages. We revisit this issue by applying meta-analytic techniques to a sample of eighteen papers, which altogether generated 348 estimates of the percentage change in the wage of a native worker with respect to a one percentage point increase in the ratio of immigrants over native workers. While many studies in our sample employ US data, estimates are obtained from Germany, The Netherlands, France, Norway, Austria, Israel and Australia. Our analysis shows that results vary across countries and are interalia related to the type of modelling approach. Technical issues such as publication bias and quality of the estimates are addressed as well. A negative but small effect of immmigration on wages of native groups with similar skills appears rather robust.

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Paper provided by University of Waikato, Population Studies Centre in its series Population Studies Centre Discussion Papers with number dp-47.

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Length: 28 pages
Date of creation: 16 Dec 2004
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Handle: RePEc:wai:pscdps:dp-47

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Related research
Keywords: Immigration Labour market Factor substitution Meta-analysis

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Find related papers by JEL classification:
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

References listed on IDEAS
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.:

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    Other versions:
  2. Hartog, Joop & Zorlu, Aslan, 2002. "The Effect of Immigration on Wages in Three European Countries," IZA Discussion Papers 642, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 02, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Orley Ashenfelter & Colm Harmon & Hessel Oosterbeek, 1999. "A Review of Estimates of the Schooling/Earnings Relationship, with Tests for Publication Bias," Working Papers 804, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  5. Rachel M. Friedberg, 2001. "The Impact Of Mass Migration On The Israeli Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1373-1408, November. [Downloadable!] (restricted)
  6. Neumark, David & Wascher, William, 1998. "Is the Time-Series Evidence on Minimum Wage Effects Contaminated by Publication Bias?," Economic Inquiry, Oxford University Press, vol. 36(3), pages 458-70, July.
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  7. Florax, R.J.G.M., 2002. "Accounting for dependence among study results in Meta-Analysis: methodology and applications to the valuation and use of natural resources," Serie Research Memoranda 0005, Free University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
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  11. Welch, Finis, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S65-97, October. [Downloadable!] (restricted)
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  13. 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)
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  19. Card, David & Krueger, Alan B, 1995. "Time-Series Minimum-Wage Studies: A Meta-analysis," American Economic Review, American Economic Association, vol. 85(2), pages 238-43, May. [Downloadable!] (restricted)
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    Other versions:
  21. 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. [Downloadable!] (restricted)
    Other versions:
  22. Stephen B. Jarrell & T. D. Stanley, 1990. "A meta-analysis of the union-nonunion wage gap," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 44(1), pages 54-67, October.
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  25. Peter Nijkamp & Jacques Poot, 2005. "The Last Word on the Wage Curve?," Journal of Economic Surveys, Blackwell Publishing, vol. 19(3), pages 421-450, 07. [Downloadable!] (restricted)
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  26. Greenwood, Michael J. & Hunt, Gary L. & Kohli, Ulrich, 1997. "The factor-market consequences of unskilled immigration to the United States," Labour Economics, Elsevier, vol. 4(1), pages 1-28, March. [Downloadable!] (restricted)
Full references

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, 2006. "The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis," IZA Discussion Papers 2044, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Ian Pool & Sandra Baxendine & William Cochrane & James Lindop, 2005. "New Zealand Regions, 1986-2001: Population Dynamics," Population Studies Centre Discussion Papers dp-52, University of Waikato, Population Studies Centre. [Downloadable!]
  3. Ian Pool & Sandra Baxendine & William Cochrane & James Lindop, 2005. "New Zealand Regions, 1986-2001: Households and families, and their dwellings," Population Studies Centre Discussion Papers dp-55, University of Waikato, Population Studies Centre. [Downloadable!]
  4. repec:ese:iserwp: is not listed on IDEAS
  5. Jacques Poot & Bill Cochrane, 2005. "Measuring the Economic Impact of Immigration: A Scoping Paper," Population Studies Centre Discussion Papers dp-48, University of Waikato, Population Studies Centre. [Downloadable!]
  6. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2006. "The Fallacy of “Job Robbing”: A Meta-Analysis of Estimates of the Effect of Immigration on Employment," Tinbergen Institute Discussion Papers 06-050/3, Tinbergen Institute. [Downloadable!]
  7. Ian Pool & Sandra Baxendine & William Cochrane & James Lindop, 2006. "New Zealand Regions, 1986-2001: Labour Market Aspects of Human Capital," Population Studies Centre Discussion Papers dp-60, University of Waikato, Population Studies Centre. [Downloadable!]
  8. Ian Pool & Sandra Baxendine & William Cochrane & James Lindop, 2005. "New Zealand Regions, 1986-2001: Education and Qualifications," Population Studies Centre Discussion Papers dp-56, University of Waikato, Population Studies Centre. [Downloadable!]
  9. Steven Stillman & David C. Maré, 2007. "The Impact of Immigration on the Geographic Mobility of New Zealanders," Working Papers 07_05, Motu Economic and Public Policy Research. [Downloadable!]
    Other versions:
  10. Jacques Poot & Lynda Sanderson, 2007. "Changes in Social Security Eligibility and the International Mobility of New Zealand Citizens in Australia," Population Studies Centre Discussion Papers dp-65, University of Waikato, Population Studies Centre. [Downloadable!]
    Other versions:
  11. Sandra Baxendine & Bill Cochrane & Jacques Poot, 2005. "Demographic Change and Transport Needs in the Waikato Region," Population Studies Centre Discussion Papers dp-51, University of Waikato, Population Studies Centre. [Downloadable!]
  12. Ian Pool & Sandra Baxendine & William Cochrane & James Lindop, 2005. "New Zealand Regions, 1986-2001: Population Structures," Population Studies Centre Discussion Papers dp-53, University of Waikato, Population Studies Centre. [Downloadable!]
  13. Victoria Chorny, & Rob Euwals & Kees Folmer, 2007. "Immigration Policy and Welfare State Design," CPB Documents 153, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  14. Sarah Hillcoat-Nallétamby & Sandra Baxendine, 2005. "The ‘Ins and Outs’ of Work – Diversity or Homogeneity in New Zealand Women’s Employment Patterns?," Population Studies Centre Discussion Papers dp-49, University of Waikato, Population Studies Centre. [Downloadable!]
  15. Ian Pool & Sandra Baxendine & William Cochrane & James Lindop, 2005. "New Zealand Regions, 1986-2001: Population Geography," Population Studies Centre Discussion Papers dp-54, University of Waikato, Population Studies Centre. [Downloadable!]
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