IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The Labor Market Effects of Opening the Border: New Evidence from Switzerland

Listed author(s):
  • Andreas Beerli
  • Giovanni Peri

Between 1999 and 2007 Switzerland opened its labor markets to immigrants from the European Union (EU), fully liberalizing access by 2007. The timing of this labor market liberalization differed by geography, however. In particular, cross-border workers, who constituted more than half of EU immigrants, were allowed free-entry into the border region (BR), but not the non-border region (NBR), already in 2004. In this paper, we exploit the different timing of these policies in a difference-in-difference approach and estimate the effects of the policy changes on the inflow of new immigrants and on native labor market outcomes such as wages and employment by comparing the BR and NBR. We find that opening the border to EU immigrants increased their presence by 4 percent of employment, and this had no significant impact on average native wages and employment. Decomposing the effect between skill groups we find that immigrants complemented highly educated native workers, while they displaced middle educated workers and had no effect on less educated.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.nber.org/papers/w21319.pdf
Download Restriction: Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 21319.

as
in new window

Length:
Date of creation: Jul 2015
Handle: RePEc:nbr:nberwo:21319
Note: LS
Contact details of provider: Postal:
National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.

Phone: 617-868-3900
Web page: http://www.nber.org
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. Sarah Bohn & Magnus Lofstrom & Steven Raphael, 2014. "Did the 2007 Legal Arizona Workers Act Reduce the State's Unauthorized Immigrant Population?," The Review of Economics and Statistics, MIT Press, vol. 96(2), pages 258-269, May.
  2. Francesco D'Amuri & Gianmarco I.P. Ottaviano & Giovanni Peri, 2008. "The Labor Market Impact of Immigration in Western Germany in the 1990's," NBER Working Papers 13851, National Bureau of Economic Research, Inc.
  3. 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.
  4. William Kerr & William Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and US Ethnic Invention," William Davidson Institute Working Papers Series wp978, William Davidson Institute at the University of Michigan.
  5. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Population Studies Centre Discussion Papers dp-47, University of Waikato, Population Studies Centre.
  6. Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 145-173.
  7. Andreas Beerli & Ronald Indergand, 2014. "Which Factors Drive the Skill-Mix of Migrants in the Long-Run?," Diskussionsschriften dp1501, Universitaet Bern, Departement Volkswirtschaft.
  8. Anna Maria Mayda, 2007. "International migration: A panel data analysis of the determinants of bilateral flows," CReAM Discussion Paper Series 0707, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  9. Kirk B. Doran & George J. Borjas, 2012. "Cognitive Mobility - Labor Market Responses to Supply Shocks in the Space of Ideas," Working Papers 019, University of Notre Dame, Department of Economics, revised Nov 2012.
  10. Sandro Favre, 2011. "The Impact of Immigration on the Wage Distribution in Switzerland," NRN working papers 2011-08, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  11. David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers 747, Princeton University, Department of Economics, Industrial Relations Section..
  12. Francesco D'Amuri & Giovanni Peri, 2012. "Immigration, jobs and employment protection: evidence from Europe before and during the Great Recession," Temi di discussione (Economic working papers) 886, Bank of Italy, Economic Research and International Relations Area.
  13. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, 06.
  14. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
  15. Ortega, Francesc & Peri, Giovanni, 2014. "Openness and income: The roles of trade and migration," Journal of International Economics, Elsevier, vol. 92(2), pages 231-251.
  16. Giovanni Peri & Chad Sparber, 2009. "Task Specialization, Immigration and Wages," Working Papers 91, University of California, Davis, Department of Economics.
  17. Sandro Favre, 2011. "The impact of immigration on the wage distribution in Switzerland," ECON - Working Papers 022, Department of Economics - University of Zurich.
  18. Jennifer Hunt, 1992. "The Impact of the 1962 Repatriates from Algeria on the French Labor Market," ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
  19. Francine D. Blau & Lawrence Kahn, 2013. "Immigration and the Distribution of Incomes," CESifo Working Paper Series 4561, CESifo Group Munich.
  20. 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.
  21. Fabio Beniamino Losa & Maurizio Bigotta & Gonzalez Oscar, 2014. "La libre circulation: joies ou douleurs?," Post-Print halshs-01182921, HAL.
  22. Mette Foged & Giovanni Peri, 2013. "Immigrants' and Native Workers: New Analysis on Longitudinal Data," NBER Working Papers 19315, National Bureau of Economic Research, Inc.
  23. Matthew J. Notowidigdo, 2011. "The Incidence of Local Labor Demand Shocks," NBER Working Papers 17167, National Bureau of Economic Research, Inc.
  24. Ethan Lewis & Giovanni Peri, 2014. "Immigration and the Economy of Cities and Regions," NBER Working Papers 20428, National Bureau of Economic Research, Inc.
  25. Giovanni Peri & Kevin Y. Shih & Chad Sparber, 2014. "Foreign STEM Workers and Native Wages and Employment in U.S. Cities," NBER Working Papers 20093, National Bureau of Economic Research, Inc.
  26. 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.
  27. Giovanni Peri & Kevin Shih & Chad Sparber, 2015. "Foreign and Native Skilled Workers: What Can We Learn from H-1B Lotteries?," NBER Working Papers 21175, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:21319. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.