Labor Market Effects of Immigration - Identif ication and Interpretation" with Christian Dustmann, Sebastian Ott en and Uta Schönberg
Abstract:
The impact of immigration on the labor market outcome s of native workers is widely studied; yet, there is disagreement about the sign and magnitude of effects, and confusion about the underlying question s that estimated parameters address. We provide a unifying framework that l inks parameters typically estimated in the literature based on repeated cro ss-sectional data to parameters that can be identified based on longitudina l data that follow workers over time. We show that some fundamental paramet ers that describe immigration’s effect on wages and employment such as the wage elasticity of labor demand or the effect of immigration on employment of those employed before the immigration shock are identified only under im plausibly strong assumptions when repeated cross-sectional data are used. I n contrast, longitudinal data permit identification of key effects under on ly mild assumptions. Our findings highlight that while the employment and w age effects of immigration are small for the average employed native worker , they can be larger for specific groups of natives, such as older workers or natives not in employment at the time of the immigration shock. DTSTAMP:20260913T071142Z DTSTART:20221020T143000Z DTEND:20221020T160000Z SEQUENCE:0 TRANSP:OPAQUE END:VEVENT END:VCALENDAR