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The Native-Born Occupational Skill Response to Immigration within Education and Experience Cells

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Abstract

Studies estimating the consequences of immigration on wages paid to native-born workers often uncover small to nonexistent effects when using cross city or state variation (the “spatial approach†) but large deleterious effects when using variation across education-by-experience cells (the “national approach†). One mechanism of labor market adjustment emphasized in the spatial approach is that native-born workers respond to immigration by specializing in occupations demanding skills in which they have a comparative advantage, thereby helping to protect themselves from labor market competition and wage losses. This paper examines whether the national approach also identifies this skill response. We find evidence that such a response does occur, which reduced the magnitude of within-cell wage effects by more than 20%.

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  • Gu, Emily & Sparber, Chad, 2015. "The Native-Born Occupational Skill Response to Immigration within Education and Experience Cells," Working Papers 2015-04, Department of Economics, Colgate University, revised 06 Aug 2015.
  • Handle: RePEc:cgt:wpaper:2015-04
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    Cited by:

    1. Ted Mouw, 2016. "The Impact of Immigration on the Labor Market Outcomes of Native Workers: Evidence using Longitudinal Data from the LEHD," Working Papers 16-56, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    Keywords

    Immigration; Occupational Skills;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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