EconPapers    
Economics at your fingertips  
 

Foreign visa salary requirement and natives’ reservation wages

Zahra Murad () and Robert Dowell
Additional contact information
Robert Dowell: Funding Circle

No 2020-06, Working Papers in Economics & Finance from University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group

Abstract: We study whether reservation wages of native workers are affected by the information about visa salary requirements for foreign workers. We conduct two experiments to test the hypothesis, a survey experiment on university students and an incentivized experiment with workers on an online labour platform. We find that native workers’ reservation wages are higher when exposed to a high than low visa salary requirement for foreign workers. We test for several mechanisms behind this finding. Our results can partly be explained by the visa salary requirement information acting as an anchor reference point for fair wage perceptions which in turn affects reservation wages. Our results highlight the importance of unintended consequences of immigration policies on local labour markets.

Keywords: reservation wages; fair wages; visa salary requirement; immigration policy; experiment (search for similar items in EconPapers)
JEL-codes: C90 E24 C83 (search for similar items in EconPapers)
Pages: 33
Date: 2020-04-30
New Economics Papers: this item is included in nep-exp, nep-gen and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://repec.port.ac.uk/EconFinance/PBSEconFin_2020_06.pdf Full text (application/pdf)

Related works:
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:pbs:ecofin:2020-06

Access Statistics for this paper

More papers in Working Papers in Economics & Finance from University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group Portsmouth Business School Richmond Building Portland Street Portsmouth PO1 3DE United Kingdom. Contact information at EDIRC.
Bibliographic data for series maintained by Shuonan Zhang ().

 
Page updated 2021-05-08
Handle: RePEc:pbs:ecofin:2020-06