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

Author

Listed:
  • Foged, Mette

    (University of Copenhagen)

  • Peri, Giovanni

    (University of California, Davis)

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.

Suggested Citation

  • Foged, Mette & Peri, Giovanni, 2015. "Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data," IZA Discussion Papers 8961, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8961
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    References listed on IDEAS

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    1. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2004. "Settlement policies and the economic success of immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 133-155, February.
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    More about this item

    Keywords

    refugees; dispersal policy; employment; manual skills; wages;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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