Does Immigration Raise Blue and White Collar Wages of Natives?
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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- 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.
- 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.
- Andrea Gavosto & Alessandra Venturini & Claudia Villosio, 1999. "Do Immigrants Compete with Natives?," LABOUR, CEIS, vol. 13(3), pages 603-621, 09.
- 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.
- 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.
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"Immigration and Wages: Evidence from the 1980's,"
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American Economic Association, vol. 81(2), pages 292-96, May.
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