Heterogeneous displacement effects of migrant labor supply - quasi-experimental evidence from Germany

Mario Scharfbillig and Marco Weissler (marco.weissler3@iab.de)
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Marco Weissler: Institut fuer Arbeitsmarkt- und Berufsforschung (IAB), Goethe University Frankfurt

No 1910, Working Papers from Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz

Abstract: We provide estimates of the effect of migrant labor supply on resident employment. We exploit variation in the number of asylum seekers eligible to the suspension of a major hiring restriction implemented in a subset of German counties. Our difference-in-difference design allows us to provide evidence from a labor supply shock of migrants on local markets net of their additional spending at arrival that might mask labor market displacement effects. Despite this, we do not find a negative effect on employment growth of natives but only on other foreign residents. This also holds for unskilled employees. Therefore, our findings can be interpreted as the consequence of differential substitutability of different subgroups, where asylum seekers are substitutes to other immigrants but not natives - even when they are similarly qualified.

Keywords: asylum seeker; displacement; skill complementarity (search for similar items in EconPapers)
JEL-codes: J22 J61 R23 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2019-07-30
New Economics Papers: this item is included in nep-eur, nep-mig, nep-ore and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (7)

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https://download.uni-mainz.de/RePEc/pdf/Discussion_Paper_1910.pdf First version, 2019 (application/pdf)

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Working Paper: Heterogeneous displacement effects of migrant labor supply - quasi-experimental evidence from Germany (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:jgu:wpaper:1910

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