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Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data

Listed author(s):
  • Mette Foged
  • Giovanni Peri

Using longitudinal data on the universe of workers in Denmark during the period 1991-2008, we track the labor market outcomes of low-skilled natives in response to an exogenous inflow of low- skilled immigrants. We innovate on previous identification strategies by considering immigrants distributed across municipalities by a refugee dispersal policy in place between 1986 and 1998. We find that an increase in the supply of refugee-country immigrants pushed less educated native workers (especially the young and low-tenured ones) to pursue less manual-intensive occupations. As a result immigration had positive effects on native unskilled wages, employment, and occupational mobility. (JEL J15, J24, J31, J61, J62)

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Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.

Volume (Year): 8 (2016)
Issue (Month): 2 (April)
Pages: 1-34

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Handle: RePEc:aea:aejapp:v:8:y:2016:i:2:p:1-34
Note: DOI: 10.1257/app.20150114
Contact details of provider: Web page: https://www.aeaweb.org/aej-applied
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  1. Cohen-Goldner, Sarit & Paserman, M. Daniele, 2011. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," European Economic Review, Elsevier, vol. 55(8), pages 1027-1045.
  2. Francesco D'Amuri & Giovanni Peri, 2014. "Immigration, Jobs, And Employment Protection: Evidence From Europe Before And During The Great Recession," Journal of the European Economic Association, European Economic Association, vol. 12(2), pages 432-464, 04.
  3. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2004. "Settlement policies and the economic success of immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 133-155, February.
  4. Christian Dustmann & Albrecht Glitz, 2015. "How Do Industries and Firms Respond to Changes in Local Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 33(3), pages 711-750.
  5. William W. Olney, 2013. "Immigration And Firm Expansion," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 142-157, 02.
  6. Marco Manacorda & Alan Manning & Jonathan Wadsworth, 2012. "The Impact Of Immigration On The Structure Of Wages: Theory And Evidence From Britain," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 120-151, 02.
  7. Eric D. Gould & Victor Lavy & M. Daniele Paserman, 2004. "Immigrating to Opportunity: Estimating the Effect of School Quality Using a Natural Experiment on Ethiopians in Israel," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 489-526.
  8. Giovanni Peri & Kevin Shih & Chad Sparber, 2015. "STEM Workers, H-1B Visas, and Productivity in US Cities," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 225-255.
  9. Frédéric Docquier & Çağlar Ozden & Giovanni Peri, 2014. "The Labour Market Effects of Immigration and Emigration in OECD Countries," Economic Journal, Royal Economic Society, vol. 124(579), pages 1106-1145, 09.
  10. Giovanni Peri, 2012. "The Effect Of Immigration On Productivity: Evidence From U.S. States," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 348-358, February.
  11. Anna Damm, 2009. "Determinants of recent immigrants’ location choices: quasi-experimental evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 145-174, January.
  12. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2014. "Labor diversity and firm productivity," European Economic Review, Elsevier, vol. 66(C), pages 144-179.
  13. Malchow-Møller, Nikolaj & Munch, Jakob R. & Skaksen, Jan Rose, 2011. "Do Foreign Experts Increase the Productivity of Domestic Firms?," IZA Discussion Papers 6001, Institute for the Study of Labor (IZA).
  14. Nikolaj Malchow-Møller & Jakob Roland Munch & Claus Aastrup Seidelin & Jan Rose Skaksen, 2013. "Immigrant Workers and Farm Performance: Evidence from Matched Employer-Employee Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 819-841.
  15. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1335-1374.
  16. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
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