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Open AccessJournal ArticleDOI

The Effect of Immigration along the Distribution of Wages

TLDR
This article analyzed the effect of immigration on wages of native workers and found that immigrants downgrade considerably upon arrival, and that the overall wage effect is slightly positive, although modest, too large to be explained by an immigration surplus.
Abstract
This paper analyses the effect immigration has on wages of native workers. Unlike most previous work, we estimate wage effects along the distribution of wages. We derive a flexible empirical strategy that does not rely on pre-allocating immigrants to particular skill groups. In our empirical analysis, we demonstrate that immigrants downgrade considerably upon arrival. As for the effects on native wages, we find that immigration depresses wages below the 20th percentile of the wage distribution, but leads to slight wage increases in the upper part of the wage distribution. The overall wage effect of immigration is slightly positive. The positive wage effects we find are, although modest, too large to be explained by an immigration surplus. We suggest alternative explanations, based on the idea that immigrants are paid less than the value of what they contribute to production, generating therefore a surplus, and we assess the magnitude of these effects.

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Rethinking the Effects of Immigration on Wages

TL;DR: This paper showed that immigrants are imperfect substitutes for U.S.-born workers within the same education-experience-gender group (because they choose different occupations and have different skills) and that most of the wage effects of immigration accrue to native workers within a decade.
Journal ArticleDOI

Rethinking the Effect of Immigration on Wages

TL;DR: In this article, the effects of immigration on the wages of native US workers of various skill levels in two steps are calculated: the first step uses labor demand functions to estimate the elasticity of substitution across different groups of workers, and the second step uses the underlying production structure and the estimated elasticities to calculate the total wage effects.
Journal ArticleDOI

The impact of immigration on the structure of wages: theory and evidence from britain

TL;DR: This paper used a pooled time series of British cross-sectional micro data on male wages and employment from the mid 1970s to the mid-2000s to show that immigration has primarily reduced the wages of immigrants, and in particular of university educated immigrants, with little discernable effect on the native-born.
Journal ArticleDOI

Immigration, Wages, and Compositional Amenities

TL;DR: The authors found that individual attitudes toward immigration policy reflect a combination of concerns over conventional economic impacts (i.e., on wages and taxes) and compositional amenities, with substantially more weight on composition effects.
Journal ArticleDOI

Immigration, Jobs and Employment Protection: Evidence from Europe before and during the Great Recession

TL;DR: This paper analyzed the impact of immigrants on the type and quantity of native jobs and found that immigrants, by taking manual-routine type of occupations pushed natives towards more complex (abstract and communication) jobs.
References
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Journal ArticleDOI

Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.

TL;DR: In this article, the generalized method of moments (GMM) estimator optimally exploits all the linear moment restrictions that follow from the assumption of no serial correlation in the errors, in an equation which contains individual effects, lagged dependent variables and no strictly exogenous variables.
Report SeriesDOI

Initial conditions and moment restrictions in dynamic panel data models

TL;DR: In this paper, two alternative linear estimators that are designed to improve the properties of the standard first-differenced GMM estimator are presented. But both estimators require restrictions on the initial conditions process.
Journal ArticleDOI

Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market

TL;DR: In this article, the authors identify job networks among Mexican migrants in the U.S. labor market and verify that the same individual is more likely to be employed and to hold a higher paying nonagricultural job when his network is exogenously larger, by including individual fixed effects in the employment and occupation regressions.
ReportDOI

The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market

TL;DR: This article developed a new approach for estimating the labor market impact of immigration by exploiting this variation in supply shifts across education-experience groups, assuming that similarly educated workers with different levels of experience participate in a national labor market.
Posted Content

Rethinking the Effects of Immigration on Wages

TL;DR: This paper showed that immigrants are imperfect substitutes for U.S.-born workers within the same education-experience-gender group (because they choose different occupations and have different skills) and that most of the wage effects of immigration accrue to native workers within a decade.
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