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Local Labor Supply Responses to Immigration

Author

Listed:
  • Ximena Del Carpio
  • Çağlar Özden
  • Mauro Testaverde
  • Mathis Wagner

Abstract

How natives adjust is central to an understanding of the impact of immigration in destination countries. Using detailed labor force data for Malaysia for 1990–2010, we provide estimates of native responses to immigration on multiple extensive margins and rare evidence for a developing country. Instrumental variable estimates show that increased immigration to a state causes substantial internal inward migration, consistent with the fact that immigration increases the demand for native workers. Relocating Malaysian workers are accompanied by their spouses (three-quarters of whom are housewives) and children who attend school. We find that these effects are concentrated among middle- and lower-skilled Malaysians.

Suggested Citation

  • Ximena Del Carpio & Çağlar Özden & Mauro Testaverde & Mathis Wagner, 2015. "Local Labor Supply Responses to Immigration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 493-521, April.
  • Handle: RePEc:bla:scandj:v:117:y:2015:i:2:p:493-521
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    File URL: http://hdl.handle.net/10.1111/sjoe.12099
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    Citations

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    Cited by:

    1. Binti Ali Ahmad,Zainab & Simler,Kenneth & Yi,Soonhwa, 2020. "Using Remittance Transaction Data for Timely Estimation of the Foreign Worker Population in Malaysia," Policy Research Working Paper Series 9331, The World Bank.
    2. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2020. "The Effect of Immigration on Labor Market Transitions of Native-Born Unemployed in the United States," Journal of Labor Research, Springer, vol. 41(3), pages 295-331, September.
    3. Leonardo Bonilla-Mejía & Leonardo Fabio Morales & Didier Hermida-Giraldo & Luz A. Flórez, 2020. "El mercado laboral de los inmigrantes y no inmigrantes. Evidencia de la crisis venezolana de refugiados," Borradores de Economia 1119, Banco de la Republica de Colombia.
    4. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 0. "The Effect of Immigration on Labor Market Transitions of Native-Born Unemployed in the United States," Journal of Labor Research, Springer, vol. 0, pages 1-37.
    5. Jaeger, David A & Ruist, Joakim & Stuhler, Jan, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    6. Christoph Basten & Michael Siegenthaler, 2019. "Do Immigrants Take or Create Residents’ Jobs? Evidence from Free Movement of Workers in Switzerland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(3), pages 994-1019, July.
    7. Clemens, Michael A., 2017. "The Effect of Occupational Visas on Native Employment: Evidence from Labor Supply to Farm Jobs in the Great Recession," IZA Discussion Papers 10492, Institute of Labor Economics (IZA).
    8. Caglar Ozden & Mauro Testaverde & Mathis Wagner, 2018. "How and Why Does Immigration Affect Crime? Evidence from Malaysia," World Bank Economic Review, World Bank Group, vol. 32(1), pages 183-202.
    9. Del Carpio,Ximena Vanessa & Wagner,Mathis Christoph, 2015. "The impact of Syrian refugees on the Turkish labor market," Policy Research Working Paper Series 7402, The World Bank.
    10. Michele Tuccio, 2017. "Determinants of Intra-ASEAN Migration," Asian Development Review, MIT Press, vol. 34(1), pages 144-166, March.

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