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

Listed author(s):
  • Foged, Mette

    ()

    (University of Copenhagen)

  • Peri, Giovanni

    ()

    (University of California, 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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8961.

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Length: 50 pages
Date of creation: Mar 2015
Publication status: published in: American Economic Journal: Applied Economics, 2016, 8 (2), 1-34
Handle: RePEc:iza:izadps:dp8961
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  1. Cohen-Goldner, Sarit & Paserman, M. Daniele, 2011. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," European Economic Review, Elsevier, vol. 55(8), pages 1027-1045.
  2. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2004. "Settlement policies and the economic success of immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 133-155, February.
  3. Eric D. Gould & Victor Lavy & M. Daniele Paserman, 2004. "Immigrating to Opportunity: Estimating the Effect of School Quality Using a Natural Experiment on Ethiopians in Israel," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 489-526.
  4. Francesco D'Amuri & Giovanni Peri, 2014. "Immigration, Jobs, And Employment Protection: Evidence From Europe Before And During The Great Recession," Journal of the European Economic Association, European Economic Association, vol. 12(2), pages 432-464, 04.
  5. 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.
  6. Giovanni Peri, 2012. "The Effect Of Immigration On Productivity: Evidence From U.S. States," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 348-358, February.
  7. Anna Damm, 2009. "Determinants of recent immigrants’ location choices: quasi-experimental evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 145-174, January.
  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. 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.
  10. William W. Olney, 2013. "Immigration And Firm Expansion," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 142-157, 02.
  11. Christian Dustmann & Albrecht Glitz, 2015. "How Do Industries and Firms Respond to Changes in Local Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 33(3), pages 711-750.
  12. 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.
  13. 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.
  14. 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.
  15. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2014. "Labor diversity and firm productivity," European Economic Review, Elsevier, vol. 66(C), pages 144-179.
  16. 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.
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