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Does Immigration Raise Blue and White Collar Wages of Natives?

  • Stefano STAFFOLANI

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Economia)

  • Enzo VALENTINI

    ([n.a.])

This paper analyses theoretically and empirically the effects of immigration on the wage rate of native workers. Empirical literature rarely finds that immigration generates a fall in the wages of manual workers. The theoretical model presented in this paper justifies those results, by hypothesizing an economic system where advanced firms buy an intermediate good from traditional firms, which employ manual workers in both clean and dirty tasks, the latter being more disliked by native workers. We conclude that native skilled wages always increase whereas native unskilled wages can both increase or decrease with immigration. An empirical analysis of the Italian labour market follows, showing that all native workers' wages rise with immigration.

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Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 330.

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Length: 17
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:anc:wpaper:330
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  1. Andrea Gavosto & Alessandra Venturini & Claudia Villosio, 1999. "Do Immigrants Compete with Natives?," LABOUR, CEIS, vol. 13(3), pages 603-621, 09.
  2. Addison, Thomas & Worswick, Christopher, 2002. "The Impact of Immigration on the Earnings of Natives: Evidence from Australian Micro Data," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 68-78, March.
  3. Alessandra Venturini & Claudia Villosio, 2004. "Labour Market Effects of Immigration: an Empirical Analysis Based on Italian Data," CHILD Working Papers wp17_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  4. Venturini,Alessandra, 2004. "Postwar Migration in Southern Europe, 1950–2000," Cambridge Books, Cambridge University Press, number 9780521640404.
  5. William J. Carrington & Pedro Lima, 1996. "The impact of 1970s repatriates from Africa on the Portuguese labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(2), pages 330-347, January.
  6. Kristin Butcher & David Card, 1991. "Immigration and Wages: Evidence From the 1980's," Working Papers 661, Princeton University, Department of Economics, Industrial Relations Section..
  7. Dustmann, Christian & Francesca Fabbri & Ian Preston, 2003. "The Local Labour Market Effects of Immigration in the UK," Royal Economic Society Annual Conference 2003 70, Royal Economic Society.
  8. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," Working Papers 633, Princeton University, Department of Economics, Industrial Relations Section..
  9. 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.
  10. Anna M. Falzoni & Alessandra Venturini & Claudia Villosio, 2007. "Skilled and Unskilled Wage Dynamics in Italy in the ‘90s: Changes in the individual characteristics, institutions, trade and technology," LABORatorio R. Revelli Working Papers Series 61, LABORatorio R. Revelli, Centre for Employment Studies.
  11. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 2, Institute for the Study of Labor (IZA).
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