Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data
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Abstract
Using longitudinal data on the universe of workers in Denmark during the period 1991-2008, we track the labor market outcomes of low-skilled natives in response to an exogenous inflow of low- skilled immigrants. We innovate on previous identification strategies by considering immigrants distributed across municipalities by a refugee dispersal policy in place between 1986 and 1998. We find that an increase in the supply of refugee-country immigrants pushed less educated native workers (especially the young and low-tenured ones) to pursue less manual-intensive occupations. As a result immigration had positive effects on native unskilled wages, employment, and occupational mobility. (JEL J15, J24, J31, J61, J62)Citation
Foged, Mette, and Giovanni Peri. 2016. "Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data." American Economic Journal: Applied Economics, 8 (2): 1-34. DOI: 10.1257/app.20150114Additional Materials
JEL Classification
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- J61 Geographic Labor Mobility; Immigrant Workers
- J62 Job, Occupational, and Intergenerational Mobility; Promotion
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