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Immigrants' and Native Workers: New Analysis on Longitudinal Data

  • Mette Foged
  • Giovanni Peri

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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File URL: http://www.nber.org/papers/w19315.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19315.

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Date of creation: Aug 2013
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Publication status: published as Mette Foged & Giovanni Peri, 2016. "Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data," American Economic Journal: Applied Economics, vol 8(2), pages 1-34.
Handle: RePEc:nbr:nberwo:19315
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  1. Cohen-Goldner, Sarit & Paserman, M. Daniele, 2004. "The Dynamic Impact of Immigration on Natives' Labour Market Outcomes: Evidence from Israel," CEPR Discussion Papers 4640, C.E.P.R. Discussion Papers.
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  5. Andri Chassamboulli & Theodore Palivos, 2012. "A Search-Equilibrium Approach to the Effects of Immigration on Labor Market Outcomes," University of Cyprus Working Papers in Economics 17-2012, University of Cyprus Department of Economics.
  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. Cattaneo, Cristina & Fiorio, Carlo V. & Peri, Giovanni, 2013. "What Happens to the Careers of European Workers When Immigrants "Take Their Jobs"?," IZA Discussion Papers 7282, Institute for the Study of Labor (IZA).
  8. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
  9. W. Reed Walker, 2013. "The Transitional Costs of Sectoral Reallocation: Evidence From the Clean Air Act and the Workforce," The Quarterly Journal of Economics, Oxford University Press, vol. 128(4), pages 1787-1835.
  10. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2011. "Does Labor Diversity affect Firm Productivity?," Norface Discussion Paper Series 2011022, Norface Research Programme on Migration, Department of Economics, University College London.
  11. David H. Autor & David Dorn & Gordon H. Hanson & Jae Song, 2014. "Trade Adjustment: Worker Level Evidence," CESifo Working Paper Series 5000, CESifo Group Munich.
  12. Manacorda, Marco & Manning, Alan & Wadsworth, Jonathan, 2010. "The Impact of Immigration on the Structure of Wages: Theory and Evidence from Britain," CEPR Discussion Papers 7888, C.E.P.R. Discussion Papers.
  13. William W. Olney, 2013. "Immigration And Firm Expansion," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 142-157, 02.
  14. Giovanni Peri, 2009. "The Effect of Immigration on Productivity: Evidence from US States," NBER Working Papers 15507, National Bureau of Economic Research, Inc.
  15. Rachel M. Friedberg, 2001. "The Impact of Mass Migration on the Israeli Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1373-1408.
  16. Torben Dall Schmidt & Peter Sandholt Jensen, 2012. "Social networks and regional recruitment of foreign labour: Firm recruitment methods and spatial sorting in Denmark," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 795-821, November.
  17. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 201-234 National Bureau of Economic Research, Inc.
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