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The Effect of Immigration on Native Earnings

Author

Listed:
  • Aslan Zorlu

    (University of Amsterdam)

  • Joop Hartog

    (University of Amsterdam)

Abstract

This study investigates the extent of labour market competition among nativeDutch workers and ethnicminorities, using national survey of the SEO and the Population statistics ofthe CBS. Firstly, the directeffect of immigrants on local labour markets is considered. It is shown thatethnic minorities fromdeveloping countries have a positive effect on the earnings of high skillednatives and an adverse effect onthe earning of low skilled native workers. On the other hand, ethnic minoritiesfrom EU-countries may havea negative effect on the earnings of high skilled natives and a positive effecton the earnings of low skillednatives. Secondly, the effect of an immigration flow by 5% of the total labourforce on native earnings isexamined along three scenarios using a general equilibrium model. It is foundthat immigration has a largenegative effect on the wages of less skilled natives and a small positive effecton the wages of high skilledworkers as new immigrants are less skilled than natives. In the case thatimmigration flow is mainlycomposed of high skilled workers, immigration has a relative large adverseeffect on high skilled natives anda small negative effect on low skilled natives. In all cases, medium skillednatives are a little adverselyaffected by immigrants.

Suggested Citation

  • Aslan Zorlu & Joop Hartog, 2000. "The Effect of Immigration on Native Earnings," Tinbergen Institute Discussion Papers 00-015/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20000015
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    References listed on IDEAS

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    Cited by:

    1. Aslan Zorlu & Joop Hartog, 2001. "Migration and Immigrants: The Case of the Netherlands," Tinbergen Institute Discussion Papers 01-042/3, Tinbergen Institute.
    2. van Mourik, K. & Crone, M.R. & Pels, T.V.M. & Reis, R., 2016. "Parents' beliefs about the cause of parenting problems and relevance of parenting support: Understanding low participation of ethnic minority and low socioeconomic status families in the Netherlands," Children and Youth Services Review, Elsevier, vol. 61(C), pages 345-352.
    3. Sjef Ederveen & Richard Nahuis & Ashok Parikh, 2007. "Labour mobility and regional disparities: the role of female labour participation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 895-913, October.
    4. Haralambie George Alin, 2016. "Migration Within The Eu And Its Impact On Unemployment Rate," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 109-113, June.

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    More about this item

    Keywords

    immigrants; wages;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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