The Labor Supply Curve is Upward Sloping: The Effects of Immigrant-Induced Demand Shocks
Sigurd Galaasen,
Andreas Kostøl,
Joan Monras and
Jonathan Vogel
No 33930, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
What is the effect of immigration on native labor-market outcomes? An extensive literature identifies the differential impact of immigration on natives employed in jobs that are more exposed to immigrant labor (supply exposure). But immigrants consume in addition to producing output. Despite this, no literature identifies the impact on natives employed in jobs that are more exposed to immigrant consumption (demand exposure). We study native labor-market effects of supply and demand exposures to immigration. Theoretically, we formalize both measures of exposure and solve for their effects on native wages. Empirically, we combine employer-employee data with a newly collected dataset covering electronic payments for the universe of residents in Norway to measure supply and demand exposures of all native workers to immigration induced by EU expansions in 2004 and 2007. We find large, positive, and persistent effects of demand exposure to EU expansion on native worker income.
JEL-codes: F0 J0 (search for similar items in EconPapers)
Date: 2025-06
New Economics Papers: this item is included in nep-lab and nep-mig
Note: ITI LS
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.nber.org/papers/w33930.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:33930
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w33930
The price is Paper copy available by mail.
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().