Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data

By M. Foged, Giovanni Peri. Social Science Research Network, 2016

368 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/4a7f74115fd8824a53d953e9d5f214e4ffcf3a20

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Citations in the corpus

Immigration, Trade and Productivity in Services: Evidence from U.K. Firms (2018, background): “Other papers have focused on the role of immigrants in promoting specialization and the division of jobs along the manual-complex task spectrum (Peri and Sparber, 2009; Damuri and Peri, 2014; Foged and Peri, 2016).”
Immigrants and the Making of America (2019, result): “A second explanation is the mechanism found in the recent study by Foged and Peri (2016).”
The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data (2014, positive): “32 Burstein and Vogel (2011) show that North-North trade can increase skill premium if productivity is complementary with skill, and their results also hold for North-North offshoring.”
Separate Worlds? Explaining the current wave of regional economic polarization (2018, background): “In the latter, immigrants are likely to compete with low-skill native workers more than in metropolitan regions (Foged and Peri, 2016).”
Gifts of the Immigrants, Woes of the Natives: Lessons from the Age of Mass Migration (2019, background): “…findings in Borjas (2003), Dustmann et al. (2017), and Monras (2018) among others, it is in contrast with results in Card (2001, 2005), Foged and Peri (2016), and Ottaviano and Peri (2012) who document that immigrants have a negligible, or even positive, impact on natives’ earnings.2 The…”