EconPapers    
Economics at your fingertips  
 

The Effect of Immigration on Wages: Exploiting Exogenous Variation at the National Level

Joan Llull

No 1436, RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM)

Abstract: This paper estimates the effect of immigration on native wages at the national level taking into account the endogenous allocation of immigrants across skill cells. Time-varying exogenous variation across skill cells for a given country is provided by interactions of push factors, distance, and skill cell dummies: distance mitigates the effect of push factors more severely for less educated and middle experienced. Because the analysis focuses on the United States and Canada, I propose a two-stage approach (Sub-Sample 2SLS) that estimates the fiist stage regression with an augmented sample of destination countries, and the second stage equation with the restricted sub-sample of interest. I derive asymptotic results for this estimator, and suggest several applications beyond the current one. The empirical analysis indicates a substantial bias in estimated OLS wage elasticities to immigration. Sub-sample 2SLS estimates average - 1:2 and are very stable to the use of alternative instruments.

Keywords: Immigration; Wages; Sub-Sample Two Stage Least Squares (search for similar items in EconPapers)
JEL-codes: J31 J61 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-ger, nep-lab, nep-lma and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20) Track citations by RSS feed

Downloads: (external link)
https://www.cream-migration.org/publ_uploads/CDP_36_14.pdf (application/pdf)

Related works:
Journal Article: The Effect of Immigration on Wages: Exploiting Exogenous Variation at the National Level (2018) Downloads
Working Paper: The Effect of Immigration on Wages: Exploiting Exogenous Variation at the National Level (2014) 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:crm:wpaper:1436

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 ().

 
Page updated 2024-02-17
Handle: RePEc:crm:wpaper:1436