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

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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File URL: http://commons.colgate.edu/cgi/viewcontent.cgi?article=1045&context=econ_facschol
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Paper provided by Department of Economics, Colgate University in its series Working Papers with number 2015-04.

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Date of creation: 31 Jul 2015
Date of revision: 06 Aug 2015
Handle: RePEc:cgt:wpaper:2015-04
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  1. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
  2. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2011. "Substitution Between Immigrants, Natives, and Skill Groups," NBER Working Papers 17461, National Bureau of Economic Research, Inc.
  3. 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..
  4. Manacorda, Marco & Manning, Alan & Wadsworth, Jonathan, 2010. "The Impact of Immigration on the Structure of Wages: Theory and Evidence from Britain," CEPR Discussion Papers 7888, C.E.P.R. Discussion Papers.
  5. Gianmarco I. P. Ottaviano & Giovanni Peri, 2012. "Rethinking The Effect Of Immigration On Wages," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 152-197, 02.
  6. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2012. "Comment: On Estimating Elasticities Of Substition," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 198-210, 02.
  7. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and US Ethnic Invention," NBER Working Papers 15768, National Bureau of Economic Research, Inc.
  8. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2010. "Immigration and the Economic Status of African-American Men," Economica, London School of Economics and Political Science, vol. 77(306), pages 255-282, 04.
  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. David Card, 2012. "Comment: The Elusive Search For Negative Wage Impacts Of Immigration," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 211-215, 02.
  11. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1335-1374.
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