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Do Immigrants Displace Young Native Workers: The Austrian Experience

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  • Rudolf Winter-Ebmer

Abstract

This paper studies the effect of increased immigration in Austria on the unemployment risk of young natives. Austria experienced a dramatic rise in the share of alien workers as a result of the breakdown of the former communist regimes (especially from former Yugoslavia). We concentrate on unemployment entry of young male workers, who are supposed to compete most heavily with new immigrants. Our results indicate that the detrimental impact - if it exists at all - is only minor. This is irrespective of the analyzed proxy for competition: The share of foreign workers in an industry or in a region.

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Paper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 011.

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Handle: RePEc:zur:iewwpx:011

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Keywords: Immigration; unemployment risk; native workers;

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References

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  1. Robert J. LaLonde & Robert H. Topel, 1991. "Labor Market Adjustments to Increased Immigration," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 167-199 National Bureau of Economic Research, Inc.
  2. George J. Borjas, 1986. "Immigrants, Minorities, and Labor Market Competition," NBER Working Papers 2028, National Bureau of Economic Research, Inc.
  3. 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.
  4. Muhleisen, Martin & Zimmermann, Klaus F., 1994. "A panel analysis of job changes and unemployment," European Economic Review, Elsevier, Elsevier, vol. 38(3-4), pages 793-801, April.
  5. 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.
  6. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 633, Princeton University, Department of Economics, Industrial Relations Section..
  7. Richard B. Freeman & Lawrence F. Katz, 1991. "Industrial Wage and Employment Determination in an Open Economy," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 235-259 National Bureau of Economic Research, Inc.
  8. Winkelmann, Rainer & Zimmermann, Klaus F, 1992. "Ageing, Migration and Labour Mobility," CEPR Discussion Papers, C.E.P.R. Discussion Papers 706, C.E.P.R. Discussion Papers.
  9. Veall, Michael R & Zimmermann, Klaus F, 1996. " Pseudo-R-[superscript 2] Measures for Some Common Limited Dependent Variable Models," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 10(3), pages 241-59, September.
  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, Springer, vol. 7(2), pages 177-92.
  11. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, July.
  12. George E. Johnson, 1980. "The labor market effects of immigration," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 33(3), pages 331-341, April.
  13. Winter-Ebmer, Rudolf, 1996. "Benefit Duration and Unemployment Entry: Quasi-experimental Evidence for Austria," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1521, C.E.P.R. Discussion Papers.
  14. Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 45-62, Spring.
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Cited by:
  1. Dustmann, Christian & Preston, Ian, 2000. "Racial and Economic Factors in Attitudes to Immigration," IZA Discussion Papers 190, Institute for the Study of Labor (IZA).
  2. Gerard Thomas Horvath, 2011. "Immigration and Distribution of Wages in Austria," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2011-11, Department of Economics, Johannes Kepler University Linz, Austria.
  3. Thomas Horvath, 2012. "Immigration and the Distribution of Wages in Austria," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 3, pages 55-69, March.
  4. Frattini, T. (Tommaso), 2012. "GINI DP 44: Immigration and Inequality in Europe," GINI Discussion Papers, AIAS, Amsterdam Institute for Advanced Labour Studies 44, AIAS, Amsterdam Institute for Advanced Labour Studies.
  5. Karin Mayr, 2003. "Immigration and Majority Voting on Income Redistriubtion-Is there a Case for Opposition from Natives?," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2003-08, Department of Economics, Johannes Kepler University Linz, Austria.
  6. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
  7. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the UK Labour Market," CReAM Discussion Paper Series 0501, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  8. Pedro S. Martins, Matloob Piracha and José Varejão, 2013. "Do Immigrants Displace Native Workers? Evidence from Matched Panel Data," Working Papers 44, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  9. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, Springer, vol. 12(4), pages 355-387, December.
  10. Michael Clemens, 2013. "The Effect of Foreign Labor on Native Employment: A Job-Specific Approach and Application to North Carolina Farms- Working Paper 326," Working Papers, Center for Global Development 326, Center for Global Development.
  11. Esteban Fernández Vázquez & Ana García Muñiz & Carmen Ramos Carvajal, 2011. "The impact of immigration on interregional migrations: an input–output analysis with an application for Spain," The Annals of Regional Science, Springer, Springer, vol. 46(1), pages 189-204, February.
  12. Rebecca Galloway & James Jozefowicz, 2008. "The Effects of Immigration on Regional Unemployment Rates in The Netherlands," International Advances in Economic Research, Springer, Springer, vol. 14(3), pages 291-302, August.
  13. Chletsos, Michael & Roupakias, Stelios, 2012. "The impact of immigration on the greek labor market," MPRA Paper 39872, University Library of Munich, Germany.
  14. Zenon Jiménez-Ridruejo Ayuso & Carlos Borondo Arribas & Julio López Díaz & Carmen Lorenzo Lago & Carmen Rodríguez Sumaza, 2009. "El efecto de la inmigración en la sostenibilidad a largo plazo del sistema de pensiones en España," Hacienda Pública Española, IEF, IEF, vol. 188(1), pages 74-121, March.
  15. Casarico, Alessandra & Devillanova, Carlo, 2003. "Social security and migration with endogenous skill upgrading," Journal of Public Economics, Elsevier, Elsevier, vol. 87(3-4), pages 773-797, March.

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