The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market

George Borjas

No 9755, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Immigration is not evenly balanced across groups of workers that 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.

JEL-codes: J1 J6 (search for similar items in EconPapers)
Date: 2003-06
New Economics Papers: this item is included in nep-lab and nep-ltv
Note: LS
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Published as Borjas, George J. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," Quarterly Journal of Economics 118(4): 1335-1374, November 2003

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Related works:
Chapter: THE LABOR DEMAND CURVE IS DOWNWARD SLOPING: REEXAMINING THE IMPACT OF IMMIGRATION ON THE LABOR MARKET (2021)
Journal Article: The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market (2003)
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