IDEAS home Printed from https://ideas.repec.org/p/zbw/kcgwps/281775.html
   My bibliography  Save this paper

Does immigration affect native wages? A meta-analysis

Author

Listed:
  • Nedoncelle, Clément
  • Marchal, Léa
  • Aubry, Amandine
  • Héricourt, Jérôme

Abstract

The impact of immigration on native workers' wages has been a topic of long-standing debate. This meta-analysis reviews 42 studies published between 1987 to 2019, offering a comprehensive assessment of reduced-form estimates of the wage effect of immigration. The results confirm that immigration has a negligible effect on native wages. However, a more pronounced wage impact is observable for the U.S. and in recent years. Our analysis underscores the influence of methodological advances and increased data availability in shaping wage effect estimates. Results also highlight the role of the estimator (OLS vs. IV-2SLS, as well as the use of shift-share instruments) in determining the sign and magnitude of the estimated wage effect.

Suggested Citation

  • Nedoncelle, Clément & Marchal, Léa & Aubry, Amandine & Héricourt, Jérôme, 2024. "Does immigration affect native wages? A meta-analysis," KCG Working Papers 31, Kiel Centre for Globalization (KCG).
  • Handle: RePEc:zbw:kcgwps:281775
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/281775/1/1879034409.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Orrenius, Pia M. & Zavodny, Madeline, 2007. "Does immigration affect wages? A look at occupation-level evidence," Labour Economics, Elsevier, vol. 14(5), pages 757-773, October.
    2. 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.
    3. Stephen Nickell & Jumana Saleheen, 2008. "The impact of immigration on occupational wages: evidence from Britain," Working Papers 08-6, Federal Reserve Bank of Boston.
    4. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 627-648, July.
    5. Steinhardt Max Friedrich, 2011. "The Wage Impact of Immigration in Germany - New Evidence for Skill Groups and Occupations," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-35, June.
    6. Ortega, Javier & Verdugo, Gregory, 2014. "The impact of immigration on the French labor market: Why so different?," Labour Economics, Elsevier, vol. 29(C), pages 14-27.
    7. Cristina Cattaneo & Carlo Fiorio & Giovanni Peri, 2013. "Immigration and careers of European workers: effects and the role of policies," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-26, December.
    8. 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.
    9. Nikolaj Malchow-Møller & Jakob R. Munch & Jan Rose Skaksen, 2012. "Do Immigrants Affect Firm-Specific Wages?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1267-1295, December.
    10. Anthony Edo, 2016. "How do rigid labor markets absorb immigration? Evidence from France," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    11. Green, Alan G. & Green, David A., 2016. "Immigration and the Canadian Earnings Distribution in the First Half of the Twentieth Century," The Journal of Economic History, Cambridge University Press, vol. 76(2), pages 387-426, June.
    12. George J. Borjas, 2021. "Native Internal Migration and the Labor Market Impact of Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 10, pages 275-312, World Scientific Publishing Co. Pte. Ltd..
    13. Costanza Biavaschi & Giovanni Facchini & Anna Maria Mayda & Mariapia Mendola, 2018. "South–South migration and the labor market: evidence from South Africa," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 823-853.
    14. Emily Gu & Chad Sparber, 2017. "The Native-Born Occupational Skill Response to Immigration within Education and Experience Cells," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(3), pages 426-450, June.
    15. George J. Borjas, 2005. "The Labor-Market Impact of High-Skill Immigration," American Economic Review, American Economic Association, vol. 95(2), pages 56-60, May.
    16. 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.
    17. Aslan Zorlu & Joop Hartog, 2005. "The effect of immigration on wages in three european countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(1), pages 113-151, December.
    18. Nzinga H. Broussard, 2017. "Immigration and the Labor Market Outcomes of Natives in Developing Countries: A Case Study of South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 65(3), pages 389-424.
    19. Bernt Bratsberg & Oddbjørn Raaum & Marianne Røed & Pål Schøne, 2014. "Immigration Wage Effects by Origin," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 356-393, April.
    20. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
    21. Robert Breunig & Nathan Deutscher & Hang Thi To, 2017. "The Relationship between Immigration to Australia and the Labour Market Outcomes of Australian-Born Workers," The Economic Record, The Economic Society of Australia, vol. 93(301), pages 255-276, June.
    22. Tanyamat SrungBoonmee, 2013. "Immigration and US native workers’ wages: differential responses by education," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(5), pages 447-464, August.
    23. Roberto Pedace, 1998. "The Impact of Immigration on the Labor Market for Native-Born Workers: Incorporating the Dynamics of Internal Migration," Eastern Economic Journal, Eastern Economic Association, vol. 24(4), pages 449-462, Fall.
    24. LaLonde, Robert J & Topel, Robert H, 1991. "Immigrants in the American Labor Market: Quality, Assimilation, and Distributional Effects," American Economic Review, American Economic Association, vol. 81(2), pages 297-302, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    2. Edo, Anthony & Rapoport, Hillel, 2019. "Minimum wages and the labor market effects of immigration," Labour Economics, Elsevier, vol. 61(C).
    3. Simonetta LONGHI & Peter NIJKAMP & Jacques POOT, 2008. "Meta-Analysis Of Empirical Evidence On The Labour Market Impacts Of Immigration," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 27, pages 161-191.
    4. Edo, Anthony & Özgüzel, Cem, 2023. "The Impact of Immigration on the Employment Dynamics of European Regions," IZA Discussion Papers 16469, Institute of Labor Economics (IZA).
    5. Ted Mouw, 2016. "The Impact of Immigration on the Labor Market Outcomes of Native Workers: Evidence using Longitudinal Data from the LEHD," Working Papers 16-56, Center for Economic Studies, U.S. Census Bureau.
    6. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, February.
    7. Cem Özgüzel, 2020. "The Cushioning Effect of Immigrant Mobility: Evidence from the Great Recession in Spain," Working Papers halshs-03000365, HAL.
    8. Hyejin Kim, 2020. "Wage and Employment Effects of Immigration: Evidence from Korea," Working Papers 2020-30, Economic Research Institute, Bank of Korea.
    9. Tse, Michael M. H. & Maani, Sholeh A., 2016. "The Labour Market Effect of Immigration: Accounting for Effective Immigrant Work Experience in New Zealand," IZA Discussion Papers 10422, Institute of Labor Economics (IZA).
    10. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2020. "The Effect of Immigration on Labor Market Transitions of Native-Born Unemployed in the United States," Journal of Labor Research, Springer, vol. 41(3), pages 295-331, September.
    11. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    12. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
    13. Julie L. Hotchkiss & Myriam Quispe-Agnoli & Fernando Rios-Avila, 2012. "The wage impact of undocumented workers," FRB Atlanta Working Paper 2012-04, Federal Reserve Bank of Atlanta.
    14. Ortega, Javier & Verdugo, Gregory, 2014. "The impact of immigration on the French labor market: Why so different?," Labour Economics, Elsevier, vol. 29(C), pages 14-27.
    15. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    16. Cem Özgüzel, 2021. "The Cushioning Effect of Immigrant Mobility," CESifo Working Paper Series 9268, CESifo.
    17. Labanca, Claudio, 2020. "The effects of a temporary migration shock: Evidence from the Arab Spring migration through Italy," Labour Economics, Elsevier, vol. 67(C).
    18. Celia P. Vera & Bruno Jiménez, 2022. "The Short-Term Labor Market Impact of Venezuelan Immigration in Peru," CEDLAS, Working Papers 0304, CEDLAS, Universidad Nacional de La Plata.
    19. Theo Sparreboom & Jesse Mertens & Sandra Berger, 2020. "The Labour Market Impact of Immigration in Three Sub-Saharan African Economies," Journal of International Migration and Integration, Springer, vol. 21(4), pages 1225-1248, December.
    20. Sharpe, Jamie & Bollinger, Christopher R., 2020. "Who competes with whom? Using occupation characteristics to estimate the impact of immigration on native wages," Labour Economics, Elsevier, vol. 66(C).

    More about this item

    Keywords

    Immigration; Labour Market; Meta-Analysis; Wage;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:kcgwps:281775. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.kcg-kiel.org/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.