Do immigrants take or create residents jobs? Quasi-experimental evidence from Switzerland

Michael Siegenthaler and Christoph Basten

VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order from Verein für Socialpolitik / German Economic Association

Abstract: We estimate the causal effect of immigration on unemployment, employment and wages of resident employees in Switzerland, whose foreign labor force has increased by 32.8% in the last ten years. To address endogeneity of immigration into different labor market cells, we develop new variants of the shift-share instrument that exploit only that part in the variation of immigration which can be explained by migration push-factors in the source countries. While OLS estimates suggest that immigrants have crowded out natives, our quasi-experimental results reveal that immigration has in fact reduced unemployment and increased employment of residents in the last decade.

JEL-codes: F22 J21 J61 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-int and nep-mig
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc13:79780

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