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The impact of immigration on the employment and wages of native workers

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  • Andri Chassamboulli

    (University of Cyprus)

  • Theodore Palivos

    (Athens University of Economics and Business)

Abstract

We analyze the impact of the immigration influx that took place during the years 2000-2007 in Greece on labor market outcomes. We employ a search and matching framework that allows for skill heterogeneity and differential unemployment income (search cost) between immigrants and natives. Within such a framework, we .find that skilled native workers, who complement immigrants in production, gain in terms of both wages and employment. The effects on unskilled native workers, who compete with immigrants, on the other hand, are ambiguous and depend first on the presence of a statutory minimum wage and second on the way that this minimum wage is determined.

Suggested Citation

  • Andri Chassamboulli & Theodore Palivos, 2013. "The impact of immigration on the employment and wages of native workers," Working Papers 160, Bank of Greece.
    • Handle: RePEc:bog:wpaper:160
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    Cited by:

    1. Dario Cords & Klaus Prettner, 2022. "Technological unemployment revisited: automation in a search and matching framework [The future of work: meeting the global challenges of demographic change and automation]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 115-135.
    2. Pappas, Nikolaos & Papatheodorou, Andreas, 2017. "Tourism and the refugee crisis in Greece: Perceptions and decision-making of accommodation providers," Tourism Management, Elsevier, vol. 63(C), pages 31-41.
    3. Xiangbo Liu & Theodore Palivos & Xiaomeng Zhang, 2017. "Immigration, Skill Heterogeneity, And Qualification Mismatch," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1231-1264, July.
    4. Birthe Larsen & Gisela Waisman, 2016. "Labor Market Performance Effects Of Discrimination And Loss Of Skill," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1574-1595, July.
    5. Stelios Roupakias & Michael Chletsos, 2020. "Immigration and far-right voting: evidence from Greece," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 591-617, December.
    6. Shiyun Zhang, 2022. "Immigration and Crime in Frictional Labor Markets," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 44, pages 152-183, April.
    7. Steven Trick & James Peoples, 2021. "Employing Non-Citizens to Address Truck Driver Shortages: Is There an Impact on Domestic Driver Wages?," Journal of Economics, Race, and Policy, Springer, vol. 4(1), pages 1-14, March.
    8. Fiaschi, Davide & Tealdi, Cristina, 2020. "Winners and Losers of Immigration," IZA Discussion Papers 13600, Institute of Labor Economics (IZA).
    9. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    10. Michael Amior & Alan Manning, 2020. "Monopsony and the wage effects of migration," CEP Discussion Papers dp1690, Centre for Economic Performance, LSE.
    11. Stefano Fusaro & Enrique López‐Bazo, 2021. "Immigration and Native Employment. Evidence from Italian Provinces in the Aftermath of the Great Recession," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 405-428, April.
    12. Sara Signorelli, 2020. "Do Skilled Migrants Compete with Native Workers? Analysis of a Selective Immigration Policy," 2020 Papers psi891, Job Market Papers.
    13. Amior, Michael & Stuhler, Jan, 2023. "Immigration, Monopsony and the Distribution of Firm Pay," IZA Discussion Papers 16692, Institute of Labor Economics (IZA).
    14. Sargent, Kristina, 2023. "The labor market impacts of Brexit: Migration and the European union," Economic Modelling, Elsevier, vol. 121(C).
    15. Lozej, Matija, 2019. "Economic migration and business cycles in a small open economy with matching frictions," Economic Modelling, Elsevier, vol. 81(C), pages 604-620.
    16. Dai, Tiantian & Fan, Hua & Liu, Xiangbo & Ma, Chao, 2022. "Delayed retirement policy and unemployment rates," Journal of Macroeconomics, Elsevier, vol. 71(C).
    17. Stefano Fusaro & Enrique López-Bazo, 2018. "“The Impact of Immigration on Native Employment: Evidence from Italy”," IREA Working Papers 201822, University of Barcelona, Research Institute of Applied Economics, revised Sep 2018.
    18. Jimenez Mori, Raul, 2021. "Eliciting individual preferences for immigrants in the Dominican Republic. Results from two choice experiments," Journal of choice modelling, Elsevier, vol. 39(C).
    19. Akira Yakita, 2021. "Is tightening immigration policy good for workers in the receiving economy?," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 975-991, October.
    20. Sacit Hadi Akdede & Eleftherios Giovanis, 2022. "The Impact of Migration Flows on Well-Being of Elderly Natives and Migrants: Evidence from the Survey of Health, Ageing and Retirement in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 935-967, April.
    21. Sargent, Kristina, 2022. "The wage dispersion effects of international migration in the European Union," Journal of Macroeconomics, Elsevier, vol. 74(C).
    22. Mitaritonna, Cristina & Orefice, Gianluca & Peri, Giovanni, 2014. "Immigrants and Firms' Productivity: Evidence from France," IZA Discussion Papers 8063, Institute of Labor Economics (IZA).
    23. Hart, Janine & Clemens, Marius, 2019. "A search and matching approach to business-cycle migration in the euro area," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203659, Verein für Socialpolitik / German Economic Association.
    24. Cords, Dario, 2017. "Endogenous technology, matching, and labor unions: Does low-skilled immigration affect the technological alignment of the host country?," Hohenheim Discussion Papers in Business, Economics and Social Sciences 20-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.

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    More about this item

    Keywords

    Immigration; Search and Matching; Unemployment; Skill-heterogeneity; Minimum Wage; Greek Economy.;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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