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Immigration Wage Impacts by Origin

Author

Listed:
  • Bernt Bratsberg

    () (Ragnar Frisch Centre for Economic Research)

  • Oddbjørn Raaum

    () (Ragnar Frisch Centre for Economic Research)

  • Marianne Røed

    () (Institute for Social Research)

  • Pål Schøne

    () (Institute for Social Research)

Abstract

We estimate the direct partial wage effect for native workers of an immigrant-induced increase in labor supply, using longitudinal records drawn from Norwegian registers and the national skill cell approach of Borjas (2003). Our results show overall negative wage impacts for both men and women. Focusing on differential wage impacts by immigrant origin, we find that immigrant inflows from the neighboring Nordic countries have more negative wage effects than inflows from developing countries. The pattern is consistent with factor demand theory if natives and other Nordic citizens are close substitutes. We also find that impact estimates, particularly for inflows from nearby countries, are sensitive to accounting for selective native attrition and within-skill group variation in demand and supply conditions.

Suggested Citation

  • Bernt Bratsberg & Oddbjørn Raaum & Marianne Røed & Pål Schøne, 2010. "Immigration Wage Impacts by Origin," CReAM Discussion Paper Series 1030, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:1030
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    Cited by:

    1. Steinhardt Max Friedrich, 2011. "The Wage Impact of Immigration in Germany - New Evidence for Skill Groups and Occupations," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-35, June.
    2. Røed, Marianne & Schøne, Pål, 2012. "Does immigration increase labour market flexibility?," Labour Economics, Elsevier, vol. 19(4), pages 527-540.

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