Immigration, Wages, and Education: A Labor Market Equilibrium Structural Model
Joan Llull
No 711, Working Papers from Barcelona School of Economics
Abstract:
This paper analyzes the effect of immigration on wages taking into account human capital and labor supply adjustments. Using U.S. micro-data for 1967-2007, I estimate a labor market equilibrium model that includes endogenous decisions on education, participation, and occupation, and allows for skill-biased technical change. Results suggest important labor market adjustments that mitigate the effect of immigration on wages. These adjustments include career switches, labor market detachment and changes in schooling decisions, and are heterogeneous across the workforce. The adjustments generate substantial self-selection biases at the lower tail of the wage distribution that are corrected by the estimated model.
Keywords: Immigration; wages; human capital; labor supply; dynamic discrete choice; labor market equilibrium (search for similar items in EconPapers)
JEL-codes: J2 J31 J61 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-dcm, nep-dge, nep-edu, nep-hrm, nep-lab, nep-lma, nep-mig and nep-ure
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Citations: View citations in EconPapers (27)
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Related works:
Journal Article: Immigration, Wages, and Education: A Labour Market Equilibrium Structural Model (2018)
Working Paper: Immigration, Wages, and Education: a Labor Market Equilibrium Structural Model (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:711
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