Estimating the Impact of Immigration on Wages in Ireland
We estimate the impact of immigration on the wages of natives in Ireland applying the technique proposed by Borjas (2003). Under this method, the labour market is divided into a number of skill cells, where the cells are defined by groups with similar levels of experience and education (or experience and occupation). Regression analysis is then employed to assess whether the average wages of natives across skill cells is affected by the share of immigrants across cells. When the cells are based on education/experience, our results suggest a negative relationship between native wages and immigrant shares. However, the opposite appears to hold when the cells are based on occupation/experience. These contradictory findings suggest that care should be exercised when applying this method as inaccurate impressions of the impact of immigration on wages may arise.
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- Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS.
- Alan Barrett & Yvonne McCarthy, 2007.
"Immigrants in a Booming Economy: Analysing Their Earnings and Welfare Dependence,"
CEIS, vol. 21(4-5), pages 789-808, December.
- Barrett, Alan & McCarthy, Yvonne, 2006. "Immigrants in a Booming Economy: Analysing their Earnings and Welfare Dependence," IZA Discussion Papers 2457, Institute for the Study of Labor (IZA).
- Giovanni Peri, 2007. "Immigrants' Complementarities and Native Wages: Evidence from California," NBER Working Papers 12956, National Bureau of Economic Research, Inc.
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