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

TY - JOUR

T1 - Immigrants' Effect on Native Workers

T2 - New Analysis on Longitudinal Data

AU - Foged, Mette

AU - Peri, Giovanni

N1 - JEL J15, J24, J31, J61, J62

PY - 2016/4

Y1 - 2016/4

N2 - 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.

AB - 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.

KW - Faculty of Social Sciences

KW - J15

KW - J24

KW - J31

KW - J61

KW - J62

U2 - 10.1257/app.20150114

DO - 10.1257/app.20150114

M3 - Journal article

SN - 1945-7782

VL - 8

SP - 1

EP - 34

JO - American Economic Journal: Applied Economics

JF - American Economic Journal: Applied Economics

IS - 2

ER -