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Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data

Listed author(s):
  • Mette Foged

    ()

    (University of Copenhagen)

  • Giovanni Peri

    ()

    (UC Davis)

Using longitudinal data on the universe of workers in Denmark during the period 1991-2008 we track the labor market outcomes of low skilled natives in response to an exogenous inflow of low skilled immigrants. We innovate on previous identification strategies by considering immigrants distributed across municipalities by a refugee dispersal policy in place between 1986 and 1998. We find that an increase in the supply of refugee-country immigrants pushed less educated native workers (especially the young and low-tenured ones) to pursue less manual-intensive occupations. As a result immigration had positive effects on native unskilled wages, employment and occupational mobility.

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Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1507.

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Date of creation: Mar 2015
Handle: RePEc:crm:wpaper:1507
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  1. Giovanni Peri, 2009. "The Effect of Immigration on Productivity: Evidence from US States," NBER Working Papers 15507, National Bureau of Economic Research, Inc.
  2. Christian Dustmann & Albrecht Glitz, 2011. "How Do Industries and Firms Respond to Changes in Local Labor Supply?," CReAM Discussion Paper Series 1118, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Francesco D'Amuri & Giovanni Peri, 2012. "Immigration, jobs and employment protection: evidence from Europe before and during the Great Recession," Temi di discussione (Economic working papers) 886, Bank of Italy, Economic Research and International Relations Area.
  4. Giovanni Peri & Kevin Shih & Chad Sparber, 2015. "STEM Workers, H-1B Visas, and Productivity in US Cities," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 225-255.
  5. Edin, P.-A. & Fredriksson, P. & Aslund, O., 2000. "Settlement Policies and the Economic Success of Immigrants," Papers 2000-22, Uppsala - Working Paper Series.
  6. Malchow-Møller, Nikolaj & Munch, Jakob R. & Seidelin, Claus Aastrup & Skaksen, Jan Rose, 2013. "Immigrant Workers and Farm Performance: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 7133, Institute for the Study of Labor (IZA).
  7. Cohen Goldner, Sarit & Paserman, M. Daniele, 2004. "The Dynamic Impact of Immigration on Natives' Labor Market Outcomes: Evidence from Israel," IZA Discussion Papers 1315, Institute for the Study of Labor (IZA).
  8. Frédéric Docquier & Çağlar Ozden & Giovanni Peri, 2014. "The Labour Market Effects of Immigration and Emigration in OECD Countries," Economic Journal, Royal Economic Society, vol. 124(579), pages 1106-1145, 09.
  9. William W. Olney, 2008. "Immigration and Firm Expansion," Department of Economics Working Papers 2010-11, Department of Economics, Williams College, revised Jun 2012.
  10. 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.
  11. Anna Piil Damm, 2005. "Determinants of Recent Immigrants’ Location Choices: Quasi-Experimental Evidence," CAM Working Papers 2005-17, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  12. Nikolaj Malchow-Møller & Jakob R. Munch & Jan Rose Skaksen, 2011. "Do Foreign Experts Increase the Productivity of Domestic Firms?," Norface Discussion Paper Series 2011014, Norface Research Programme on Migration, Department of Economics, University College London.
  13. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2014. "Labor diversity and firm productivity," European Economic Review, Elsevier, vol. 66(C), pages 144-179.
  14. 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.
  15. Gould, Eric D & Lavy, Victor & Paserman, M. Daniele, 2003. "Immigrating to Opportunity: Estimating the Effect of School Quality Using a Natural Experiment on Ethiopians in Israel," CEPR Discussion Papers 4052, C.E.P.R. Discussion Papers.
  16. Marco Manacorda & Alan Manning & Jonathan Wadsworth, 2012. "The Impact Of Immigration On The Structure Of Wages: Theory And Evidence From Britain," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 120-151, 02.
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