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The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis

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  • Longhi, Simonetta

    (University of Reading)

  • Nijkamp, Peter

    (Vrije Universiteit Amsterdam)

  • Poot, Jacques

    (Vrije Universiteit Amsterdam)

Abstract

Immigration is a phenomenon of growing significance in many countries. Increasing social tensions are leading to political pressure to limit a further influx of foreign-born persons on the grounds that the absorption capacity of host countries has been exceeded and social cohesion threatened. There is also in public discourse a common perception of immigration resulting in economic costs, particularly with respect to wages and employment opportunities of the native born. This warrants a scientific assessment, using comparative applied research, of the empirical validity of the perception of a negative impact of immigration on labour market outcomes. We apply meta-analytic techniques to 165 estimates from 9 recent studies for various OECD countries and assess whether immigration leads to job displacement among native workers. The 'consensus estimate' of the decline in native-born employment following a 1 percent increase in the number of immigrants is a mere 0.024 percent. However, the impact is somewhat larger on female than on male employment. The negative employment effect is also greater in Europe than in the United States. Furthermore, the results are sensitive to the choice of the study design. For example, failure to control for endogeneity of immigration itself leads to an underestimate of its employment impact.

Suggested Citation

  • Longhi, Simonetta & Nijkamp, Peter & Poot, Jacques, 2006. "The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis," IZA Discussion Papers 2044, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp2044
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    References listed on IDEAS

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    Cited by:

    1. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Skilled Immigration and the Employment Structures of US Firms," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 147-186.
    2. Herbert Brücker & Elke J. Jahn, 2011. "Migration and Wage‐setting: Reassessing the Labor Market Effects of Migration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(2), pages 286-317, June.
    3. N. N., 2009. "Labour Mobility within the EU in the Context of Enlargement and the Functioning of the Transitional Arrangements," WIFO Studies, WIFO, number 35641, June.
    4. Moreno-Galbis, Eva & Tritah, Ahmed, 2016. "The effects of immigration in frictional labor markets: Theory and empirical evidence from EU countries," European Economic Review, Elsevier, vol. 84(C), pages 76-98.
    5. Yigit Aydede, 2017. "Immigration and location choices of native-born workers in Canada," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 113-134, March.
    6. East, Chloe N. & Velasquez, Andrea, 2018. "The Effect of Increasing Immigration Enforcement on the Labor Supply of High-Skilled Citizen Women," IZA Discussion Papers 12029, Institute of Labor Economics (IZA).
    7. Jean, Sébastien & Jiménez, Miguel, 2011. "The unemployment impact of immigration in OECD countries," European Journal of Political Economy, Elsevier, vol. 27(2), pages 241-256, June.
    8. Almosova, Anna, 2013. "Labor Market Institutions and The Effect of Immigration on National Employment," MPRA Paper 49785, University Library of Munich, Germany, revised 12 Sep 2013.
    9. Nikolaj Malchow-Møller & Jakob Roland Munch & Claus Aastrup Seidelin & Jan Rose Skaksen, 2013. "Immigrant Workers and Farm Performance: Evidence from Matched Employer-Employee Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 819-841.
    10. Brücker, Herbert & Hauptmann, Andreas & Jahn, Elke J. & Upward, Richard, 2014. "Migration and imperfect labor markets: Theory and cross-country evidence from Denmark, Germany and the UK," European Economic Review, Elsevier, vol. 66(C), pages 205-225.
    11. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).
    12. Rümeysa ÇELİK & Irmak ARSLAN, 0. "Göç ve İşsizlik Arasındaki İlişki: Ampirik Bir Uygulama," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(74), pages 65-75.
    13. Kwon, Chul-Woo & Chun, Bong Geul, 2011. "Relationship regarding the demand for labor between domestic temporary and foreign workers: Korean case," Japan and the World Economy, Elsevier, vol. 23(4), pages 240-245.
    14. Lucia Dalla Pellegrina & Margherita Saraceno, 2017. "Posting of workers across the EU: an empirical investigation," European Journal of Law and Economics, Springer, vol. 44(3), pages 423-451, December.
    15. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    16. Olga Lazareva & Konstantin Sonin, 2008. "Russian Migrants to Russia: Choice of Location and Labor Market Outcomes," Working Papers w0117, Center for Economic and Financial Research (CEFIR).
    17. Wilson, E. J. & Jayanthakumaran, K. & Verma, R., 2012. "Demographics, Labor Mobility, and Productivity," ADBI Working Papers 387, Asian Development Bank Institute.
    18. Olga Lazareva, 2015. "Russian migrants to Russia: assimilation and local labor market effects," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
    19. Yana Pryymachenko & Klas Fregert & Fredrik N. G. Andersson, 2013. "The effect of emigration on unemployment: Evidence from the Central and Eastern European EU member states," Economics Bulletin, AccessEcon, vol. 33(4), pages 2692-2697.
    20. Pokrovsky, D. & Shapoval, A., 2015. "Distribution of Entrepreneurial Skills and Migration: Employment Structure, Income Inequality, and Welfare," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 36-62.

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    More about this item

    Keywords

    meta-analysis; employment; immigration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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