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A Meta-Analytic Assessment of the Effect of Immigration on Wages

Author Info

Listed author(s):
  • Simonetta Longhi

    (Free University, Amsterdam, The Netherlands)

  • Peter Nijkamp

    (Free University, Amsterdam, The Netherlands)

  • Jacques Poot

    ()

    (University of Waikato)

Abstract

In our increasingly interconnected and open world, international migration is becoming an important socio-economic phenomenon for many countries. Since the early 1980s, many studies have been undertaken of the impact of immigration on host labour markets. Borjas (2003) noted that the estimated effect of immigration on the wage of native workers varies widely from study to study and sometimes even within the same study. In addition, these effects cluster around zero. Such a small effect is a rather surprising outcome, given that in a closed competitive labour market an increase in labour supply may be expected to exert a downward pressure on wages. We revisit this issue by applying meta-analytic techniques to a sample of eighteen papers, which altogether generated 348 estimates of the percentage change in the wage of a native worker with respect to a one percentage point increase in the ratio of immigrants over native workers. While many studies in our sample employ US data, estimates are obtained from Germany, The Netherlands, France, Norway, Austria, Israel and Australia. Our analysis shows that results vary across countries and are interalia related to the type of modelling approach. Technical issues such as publication bias and quality of the estimates are addressed as well. A negative but small effect of immmigration on wages of native groups with similar skills appears rather robust.

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File URL: ftp://wms-webprod1.mngt.waikato.ac.nz/RePEc/wai/pscdps/dp-47.pdf
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Paper provided by University of Waikato, Population Studies Centre in its series Population Studies Centre Discussion Papers with number dp-47.

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Length: 28 pages
Date of creation: 16 Dec 2004
Handle: RePEc:wai:pscdps:dp-47
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Keywords: Immigration; Labour market; Factor substitution; Meta-analysis;

Other versions of this item:

Find related papers by JEL classification:
  • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
  • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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