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

  • Siegenthaler, Michael
  • Basten, Christoph
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    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.

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    Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79780.

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    Date of creation: 2013
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    Handle: RePEc:zbw:vfsc13:79780
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    10. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Skilled Immigration and the Employment Structures of US Firms," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages S147 - S186.
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