IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp17936.html

The Labor Supply Curve is Upward Sloping: The Labor Market Effects of Immigrant-Induced Demand Shocks

Author

Listed:
  • Galaasen, Sigurd

    (Norges Bank)

  • Kostøl, Andreas Ravndal

    (Norwegian Business School (BI))

  • Monras, Joan

    (Federal Reserve Bank of San Francisco)

  • Vogel, Jonathan

    (UCLA)

Abstract

What is the effect of immigration on native labor-market outcomes? An extensive literature identifies the differential impact of immigration on natives employed in jobs that are more exposed to immigrant labor (supply exposure). But immigrants consume in addition to producing output. Despite this, no literature identifies the impact on natives employed in jobs that are more exposed to immigrant consumption (demand exposure). We study native labor-market effects of supply and demand exposures to immigration. Theoretically, we formalize both measures of exposure and solve for their effects on native wages. Empirically, we combine employer-employee data with a newly collected dataset covering electronic payments for the universe of residents in Norway to measure supply and demand exposures of all native workers to immigration induced by EU expansions in 2004 and 2007. We find large, positive, and persistent effects of demand exposure to EU expansion on native worker income.

Suggested Citation

  • Galaasen, Sigurd & Kostøl, Andreas Ravndal & Monras, Joan & Vogel, Jonathan, 2025. "The Labor Supply Curve is Upward Sloping: The Labor Market Effects of Immigrant-Induced Demand Shocks," IZA Discussion Papers 17936, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp17936
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Haan & Julia Schmieder & Izabela Wnuk-Soares, 2026. "The Supply-Side Effect of Immigration on Prices: Evidence from Nursing Homes," Rationality and Competition Discussion Paper Series 585, CRC TRR 190 Rationality and Competition.
    2. Daniel J. Wilson & Xiaoqing Zhou, 2026. "The Impacts of Unauthorized Immigration on U.S. Labor and Housing Markets: New Evidence from Administrative Microdata," Working Paper Series 2026-23, Federal Reserve Bank of San Francisco.
    3. Gaetano Basso & Mitali R. Mathur & Giovanni Peri, 2026. "Immigration and Macroeconomic Outcomes in OECD Countries," NBER Working Papers 35523, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp17936. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Fallak (email available below). General contact details of provider: https://edirc.repec.org/data/izaaalu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.