Immigration and the Earnings of Young Native Workers
One of the most controversial aspects of immigration policy is the impact of foreigners on labour market outcomes of natives. Simple labour supply analysis demonstrates that these effects depend upon whether immigrants and natives act as substitutes or complements. In the first part of the study we attempt to replicate existing studies with Austrian data. In the second part we offer a further argument for a potential detrimental effect of immigration: if wages are negotiated at the firm level and migrant workers are less strike-prone, the bargaining power of workers will be lower the higher the share of foreign workers in the firm. Employing many immigrants in the firm, on the other hand, may also have an increasing effect on the wage rates of natives: within a two-tier wage system more outsiders create additional rents which can be shared among native insiders and their employers. The results show no negative impact of foreign labour on young natives' earnings levels either in a regional or sectoral respect and at the firm level. The results for earnings growth in the period 1988--91 are mixed. For job changers a rise in the share of foreign workers tends to be positive, whereas for workers staying with the same firm we find significant negative effects.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:||Apr 1994|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:936. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.