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Estimating the Impact of Immigration on the Wages in Ireland

Author

Listed:
  • Alan Barrett

    (Economic and Social Research Institute, Dublin)

  • Adele Bergin

    (Economic and Social Research Institute, Dublin)

  • Elish Kelly

    (Economic and Social Research Institute, Dublin)

Abstract
We estimate the impact of immigration on the wages of natives in Ireland applying the technique proposed by Borjas (2003). Under this method, the labour market is divided into a number of skill cells, where the cells are defined by groups with similar ages and levels of education (or age and occupation). Regression analysis is then employed to assess whether the average wages of natives across skill cells is affected by the share of immigrants across cells. When the cells are based on education/age, our results suggest a negative relationship between native wages and immigrant shares. However, the opposite appears to hold when the cells are based on occupation/age. These contradictory findings suggest that care should be exercised when applying this method as inaccurate impressions of the impact of immigration on wages may arise.

Suggested Citation

  • Alan Barrett & Adele Bergin & Elish Kelly, 2011. "Estimating the Impact of Immigration on the Wages in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 42(1), pages 01-26.
    • Handle: RePEc:eso:journl:v:42:y:2011:i:1:p:01-26
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    References listed on IDEAS

    as
    1. Abowd, John M. & Freeman, Richard B. (ed.), 1991. "Immigration, Trade, and the Labor Market," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226000954, September.
    2. Giovanni Peri, 2007. "Immigrants' Complementarities and Native Wages: Evidence from California," NBER Working Papers 12956, National Bureau of Economic Research, Inc.
    3. Alan Barrett & Yvonne McCarthy, 2007. "Immigrants in a Booming Economy: Analysing Their Earnings and Welfare Dependence," LABOUR, CEIS, vol. 21(4‐5), pages 789-808, December.
    4. Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS.
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    Citations

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    Cited by:

    1. Nguyen Nancy Duong & Burke Órlaith & Murphy Patrick, 2016. "A Simulation Study of Weighting Methods to Improve Labour-Force Estimates of Immigrants in Ireland," Journal of Official Statistics, Sciendo, vol. 32(3), pages 693-718, September.
    2. Mette Foged & Linea Hasager & Vasil Yasenov, 2022. "The role of labor market institutions in the impact of immigration on wages and employment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 164-213, January.
    3. Cormac Ó Gráda & Kevin Hjortshøj O'Rourke, 2022. "The Irish economy during the century after partition," Economic History Review, Economic History Society, vol. 75(2), pages 336-370, May.
    4. Frank Walsh, 2013. "Labour Market Regulation and Migration in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 44(1), pages 85-102.
    5. Pablo Agnese & Pablo Salvador, 2012. "More alike than different: the Spanish and Irish labour markets before and after the crisis," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-24, December.
    6. Mary J. Keeney, 2010. "A Quality Adjusted Measure of Labour Services for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 41(2), pages 149-172.
    7. Amalia Cristescu & Maria Denisa Vasilescu & Larisa Stanila & Madalina Ecaterina Popescu, 2013. "Regional Analysis Of The Real Earnings In Romania," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 7(2), pages 58-78, DECEMBER.
    8. Peter Mühlau, 2012. "Occupational and Earnings Mobility of Polish Migrants in Ireland in the Recession," The Institute for International Integration Studies Discussion Paper Series iiisdp413, IIIS.
    9. Kingston, Gillian & O'Connell, Philip J. & Kelly, Elish, 2013. "Ethnicity and Nationality in the Irish Labour Market: Evidence from the QNHS Equality Module," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT230.
    10. Frances McGinnity & Gillian Kingston, 2017. "An Irish Welcome? Changing Irish Attitudes to Immigrants and Immigration: The Role of Recession and Immigration," The Economic and Social Review, Economic and Social Studies, vol. 48(3), pages 253-279.
    11. Laurence, James & Kelly, Elish & McGinnity, Frances & Curristan, Sarah, 2023. "Wages and working conditions of non-Irish nationals in Ireland," Research Series, Economic and Social Research Institute (ESRI), number JR2.
    12. Leire Aldaz Odriozola & Begoña Eguía Peña, 2016. "Immigration and Occupational Mobility of Native Workers in Spain. A Gender Perspective," Journal of International Migration and Integration, Springer, vol. 17(4), pages 1181-1193, November.
    13. Nancy Duong Nguyen & Patrick Murphy, 2015. "To Weight or Not To Weight? A Statistical Analysis of How Weights Affect the Reliability of the Quarterly National Household Survey for Immigration Research in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 46(4), pages 567-603.
    14. Hamid Hassan & Sarosh Asad & Yasuo Hoshino, 2016. "Connecting the Post-Training Task and Contextual Performance with the Essentials of Training Program and Characteristics of Trainees," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(4), pages 1-48, March.

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    More about this item

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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