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Revisiting the Effect of Immigration on Native Employment in the EU

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  • Balint Menyhert

    (Department of Economics, Central European University)

Abstract

This paper uses and extends the empirical strategy developed by Angrist and Kugler (2003) in order to test the effect of external immigration on native employment rates in the European Union (EU) in light of the booming migration flows of the 2000s. My findings discredit the authors’ main assertions that immigration causes considerable job displacement among natives, the extent of which is significantly related to protective labour market institutions in the host country. The divergence of results stems partly from the continuous transformation of the immigration process and its employment consequences for natives, partly from the superior identification strategies employed to account for heterogeneity across countries and effective labour market institutions. Immigration is found to be driven principally by labour demand factors and appears at least as much an economic blessing to entertain as something to be afraid of and protected from.

Suggested Citation

  • Balint Menyhert, 2012. "Revisiting the Effect of Immigration on Native Employment in the EU," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 4(1).
    • Handle: RePEc:ttu:rebcee:2
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    References listed on IDEAS

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    1. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
    2. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    3. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    4. Giuseppe Nicoletti & Stefano Scarpetta & Olivier Boylaud, 2000. "Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation," OECD Economics Department Working Papers 226, OECD Publishing.
    5. 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 302-331, June.
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