IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Foreign labor and regional labor markets: aggregate and disaggregate impact on growth and wages in Danish regions

  • Torben Schmidt

    ()

  • Peter Jensen

    ()

Foreign labor has become a central issue in Western Europe. This paper tests whether (1) inflows of foreign labor affect regional growth, and thereby whether employment opportunities for Danish workers are affected; (2) inflows of foreign labor lower real wage growth. We find that foreign labor has non-negative effects on the job opportunities for Danish workers in regional labor markets, whereas the evidence of a regional wage growth effect is mixed. We also present disaggregated results focusing on regional heterogeneity of business structures, skill levels and backgrounds of foreign labor. The results are interpreted within a specific Danish labor market context and the associated regional outcomes. This adds to previous findings and emphasizes the importance of labor market institutions for the effect of foreign labor on regional employment growth. Copyright Springer-Verlag 2013

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://hdl.handle.net/10.1007/s00168-012-0517-1
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 50 (2013)
Issue (Month): 3 (June)
Pages: 809-840

as
in new window

Handle: RePEc:spr:anresc:v:50:y:2013:i:3:p:809-840
Contact details of provider: Web page: http://link.springer.de/link/service/journals/00168/index.htm

More information through EDIRC

Order Information: Web: http://link.springer.de/orders.htm

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.:

as in new window
  1. Thomas Gries & Manfred Kraft & Christina Pieck, 2011. "Interregional migration, self-selection and the returns to education in Brazil," The Annals of Regional Science, Springer, vol. 46(3), pages 707-732, June.
  2. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
  3. David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
  4. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2004. "Training in Europe," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 346-360, 04/05.
  5. Niebuhr, Annekatrin, 2006. "Migration and innovation: Does cultural diversity matter for regional R&D activity?," HWWI Research Papers 3-1, Hamburg Institute of International Economics (HWWI).
  6. Brigitte Waldorf, 2009. "Is human capital accumulation a self-propelling process? Comparing educational attainment levels of movers and stayers," The Annals of Regional Science, Springer, vol. 43(2), pages 323-344, June.
  7. Martin Robson, 2009. "Structural change, specialization and regional labour market performance: evidence for the UK," Applied Economics, Taylor & Francis Journals, vol. 41(3), pages 275-293.
  8. Gabriel J Felbermayr & Sanne Hiller & Davide Sala, 2008. "Does Immigration Boost Per Capita Income?," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 300/2008, Department of Economics, University of Hohenheim, Germany.
  9. Peter Sandholt Jensen & Torben Dall Schmidt, 2011. "Testing for Cross-sectional Dependence in Regional Panel Data," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 423-450, July.
  10. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
  11. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November.
  12. Zimmermann, Klaus F, 1993. "Native Wage Impacts of Foreign Labour: A Random Effects Panel Analysis," CEPR Discussion Papers 851, C.E.P.R. Discussion Papers.
  13. 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, MIT Press, vol. 118(4), pages 1335-1374, November.
  14. Joshua D. Angrist & Adriana D. Kugler, 2003. "Protective or counter-productive? labour market institutions and the effect of immigration on eu natives," Economic Journal, Royal Economic Society, vol. 113(488), pages F302-F331, 06.
  15. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2005. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 451-477, 07.
  16. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer, vol. 21(3), pages 627-648, July.
  17. André Mollick & Marie Mora, 2012. "The impact of higher education on Texas population and employment growth," The Annals of Regional Science, Springer, vol. 48(1), pages 135-149, February.
  18. repec:ese:iserwp:2003-23 is not listed on IDEAS
  19. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 128-161.
  20. Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May.
  21. Neumann, George R & Topel, Robert H, 1991. "Employment Risk, Diversification, and Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1341-65, November.
  22. Adela Nistor, 2009. "Assessing the Effectiveness of Human Capital Investments on the Regional Unemployment Rate in the United States: 1990 and 2000," International Regional Science Review, , vol. 32(1), pages 65-91, January.
  23. J. Ekberg & M. Hammarstedt & G. Shukur, 2010. "Immigrant-native earnings differentials: SUR estimation applied on three generations," The Annals of Regional Science, Springer, vol. 45(3), pages 705-720, December.
  24. Risager, Ole, 1992. " Wage Rivalry and Insider-Outsider Relations: Evidence for Skilled and Unskilled Men in Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(4), pages 543-59.
  25. Vietorisz, Thomas & Harrison, Bennett, 1973. "Labor Market Segmentation: Positive Feedback and Divergent Development," American Economic Review, American Economic Association, vol. 63(2), pages 366-76, May.
  26. Stephan Russek, 2010. "Differential labour mobility and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 587-606, 08.
  27. 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.
  28. Hofstede, Geert, 1994. "The business of international business is culture," International Business Review, Elsevier, vol. 3(1), pages 1-14, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:50:y:2013:i:3:p:809-840. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Christopher F Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.