Employment, Wages, and the Economic Cycle: Differences between Immigrants and Natives

Christian Dustmann, Albrecht Glitz () and Thorsten Vogel ()
Additional contact information
Thorsten Vogel: Humboldt Universitat zu Berlin and Centre for Research and Analysis of Migration

No 609, RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM)

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)
JEL-codes: E32 F22 J31 (search for similar items in EconPapers)
Date: 2006-09
New Economics Papers: this item is included in nep-eec, nep-lab, nep-mac and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.cream-migration.org/publ_uploads/AbstrDPS_09_06.pdf (application/pdf)

Related works:
Journal Article: Employment, wages, and the economic cycle: Differences between immigrants and natives (2010)
Working Paper: Employment, Wages, and the Economic Cycle: Differences between Immigrants and Natives (2009)
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:crm:wpaper:0609

Access Statistics for this paper

More papers in RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM) Contact information at EDIRC.
Bibliographic data for series maintained by CReAM Administrator () and Matthew Nibloe ().