THE LABOR DEMAND CURVE IS DOWNWARD SLOPING: REEXAMINING THE IMPACT OF IMMIGRATION ON THE LABOR MARKET

George Borjas

Chapter 9 in Foundational Essays in Immigration Economics, 2021, pp 235-274 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Immigration is not evenly balanced across groups of workers who have the same education but differ in their work experience, and the nature of the supply imbalance changes over time. This paper develops a new approach for estimating the labor market impact of immigration by exploiting this variation in supply shifts across education-experience groups. I assume that similarly educated workers with different levels of experience participate in a national labor market and are not perfect substitutes. The analysis indicates that immigration lowers the wage of competing workers: a 10 percent increase in supply reduces wages by 3 to 4 percent.

Keywords: Immigration; Economics; Labor Markets; Refugees; Self-selection; Return Migration; Migration; Costs and Benefits from Immigration; Assimilation; Cohort Effects; National Origin; Ethnicity; Neighborhood Effects; Ethnic Capital; Internal Migration (search for similar items in EconPapers)
JEL-codes: F66 J01 J15 J61 (search for similar items in EconPapers)
Date: 2021
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Related works:
Journal Article: The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market (2003)
Working Paper: The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market (2003)
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