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Wage and employment effects of immigration: Evidence from South Korea

Author

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  • Hyejin KIM

    (Bank of Korea, Economic Research Institute)

Abstract

This paper studies the impact of immigration on native labor market outcomes in South Korea. We exploit the variation in immigration flows in an education-experience cell and find that, on average, immigration has no harmful effect on the wages or employment of native workers. However, there is a great heterogeneity of wage effects across education groups: high school dropouts suffer from the adverse effects, whereas the effects for college graduates are positive. We find the potential explanation for these differential effects in the suggestive evidence on the degree of substitution. Specifically, we examine the similarity of occupational distribution between natives and immigrants and assimilation patterns for immigrants.

Suggested Citation

  • Hyejin KIM, 2023. "Wage and employment effects of immigration: Evidence from South Korea," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 89(1), pages 63-83, March.
    • Handle: RePEc:ctl:louvde:v:89:y:2023:i:1:p:63-83
    DOI: 10.1017/dem.2021.16
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    Cited by:

    1. Hyejin Kim & Jongkwan Lee, 2023. "Task specialization and low‐skilled immigration in a highly educated country: Evidence from Korea," Southern Economic Journal, John Wiley & Sons, vol. 89(4), pages 1078-1101, April.

    More about this item

    Keywords

    Employment; Immigration;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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