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Do immigrants take or create residents jobs? Quasi-experimental evidence from Switzerland

Author

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  • Siegenthaler, Michael
  • Basten, Christoph

Abstract

We estimate the causal effect of immigration on unemployment, employment and wages of resident employees in Switzerland, whose foreign labor force has increased by 32.8% in the last ten years. To address endogeneity of immigration into different labor market cells, we develop new variants of the shift-share instrument that exploit only that part in the variation of immigration which can be explained by migration push-factors in the source countries. While OLS estimates suggest that immigrants have crowded out natives, our quasi-experimental results reveal that immigration has in fact reduced unemployment and increased employment of residents in the last decade.

Suggested Citation

  • Siegenthaler, Michael & Basten, Christoph, 2013. "Do immigrants take or create residents jobs? Quasi-experimental evidence from Switzerland," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79780, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc13:79780
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Michael Graff & Massimo Mannino & Michael Siegenthaler, 2014. "The Swiss "Job Miracle"," KOF Working papers 14-368, KOF Swiss Economic Institute, ETH Zurich.
    2. Andreas Beerli & Ronald Indergand, 2014. "Which Factors Drive the Skill-Mix of Migrants in the Long-Run?," Diskussionsschriften dp1501, Universitaet Bern, Departement Volkswirtschaft.
    3. repec:spr:sjecst:v:153:y:2017:i:1:d:10.1007_bf03399433 is not listed on IDEAS
    4. Kathrin Degen & Andreas M. Fischer, 2017. "Immigration and Swiss House Prices," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 153(1), pages 15-36, January.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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