EconPapers    
Economics at your fingertips  
 

Employment, wages, and the economic cycle: Differences between immigrants and natives

Christian Dustmann, Albrecht Glitz () and Thorsten Vogel ()

European Economic Review, 2010, vol. 54, issue 1, 1-17

Abstract: In this paper, we analyse differences in the cyclical pattern of employment and wages of immigrants and natives for two large immigrant receiving countries, Germany and the UK. We show that, despite large differences in their immigrant populations, there are similar and significant differences in cyclical responses between immigrants and natives in both countries, even conditional on education, age, and location. We decompose changes in outcomes into a secular trend and a business cycle component. We find significantly larger unemployment responses to economic shocks for low-skilled workers relative to high-skilled workers and for immigrants relative to natives within the same skill group. There is little evidence for differential wage responses to economic shocks. We offer three explanations for these findings: an equilibrium search model, where immigrants experience higher job separation rates, a model of dual labour markets, and differences in the complementarity of immigrants and natives to capital.

Keywords: Immigration; Unemployment; Business; cycle (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (82) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014-2921(09)00058-0
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Employment, Wages, and the Economic Cycle: Differences between Immigrants and Natives (2009) Downloads
Working Paper: Employment, Wages, and the Economic Cycle: Differences between Immigrants and Natives (2006) Downloads
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:eee:eecrev:v:54:y:2010:i:1:p:1-17

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-22
Handle: RePEc:eee:eecrev:v:54:y:2010:i:1:p:1-17