Interacting Labor and Product Market Regulation and the Impact of Immigration on Native Wages

Prantl, Susanne; Spitz‐Oener, Alexandra

doi:10.2139/ssrn.2373058

Cited by 4 publications

(4 citation statements)

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“…Borjas (2003) and Aydemir andBorjas (2007, 2011) estimate wage elasticities to be between − 0.3 and − 0.4. Altonji and Card (1991), Goldin (1994), andBorjas, Freeman andKatz (1992), and, more recently, Prantl and Spitz-Oener (2014) and Borjas (2016), using different approaches, find elasticities that are similar to those estimated in this paper. The effect of immigration on other outcomes is also analyzed in the literature using cross-labor market comparisons.…”

Section: Introductionsupporting

confidence: 80%

The Effect of Immigration on Wages

Llull

2017

J. Human Resources

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I estimate the effect of immigration on wages of native male workers correcting for endogenous allocation of immigrants across education-experience cells. Exogenous variation is obtained from interactions of push factors, distance, and skill-cell dummies: distance mitigates the effect of push factors more severely for some skill groups. I propose a two-stage approach (Sub-Sample 2SLS) that estimates the first stage regression with an augmented sample of destination countries, and the second stage with a restricted sub-sample of interest. Asymptotic properties are discussed. Results show important OLS biases. For U.S. and Canada, Sub-Sample 2SLS elasticities average around minus one, very stable across alternative specifications and different instruments. JEL Codes: J61, J31, C26.Sub-Sample 2SLS estimated wage elasticities to immigration average − 1, which more than doubles OLS counterparts. This result is very stable across alternative push factors, definitions of distance, and fixed effects specifications, suggesting that treatment effects could be homogeneous, and the resulting wage elasticity, an average treatment effect. All in all, the main conclusion is that, even when the national-level cross-skill-cell approach is used, endogenous allocation of immigrants across labor markets creates a substantial bias in the estimation of wage effects of immigration.

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Section: Introductionsupporting

confidence: 80%

The Effect of Immigration on Wages

Llull

2017

J. Human Resources

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“…GDR citizens self-selected into jobs and industries independently of conditions that later prevailed in the market economy. A related argument has been made in the migration literature with regard to pre-determined occupational choices of migrants (Friedberg, 2001;Borjas and Doran, 2012;Prantl and Spitz-Oener, 2014).…”

Section: Selection Into Industriesmentioning

confidence: 96%

The impact of a negative labor demand shock on fertility – Evidence from the fall of the Berlin Wall

Liepmann

2018

Labour Economics

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How does a negative labor demand shock impact individual-level fertility? I analyze this question in the context of the East German fertility decline after the fall of the Berlin Wall in 1989. Exploiting differential pressure for restructuring across industries, I find that throughout the 1990s, women more severely impacted by the demand shock had more children on average than their counterparts who were less severely impacted. I argue that in uncertain economic circumstances, women with relatively more favorable labor market outcomes postpone childbearing in order not to put their labor market situations at further risk. This mechanism is relevant for all qualification groups, including high-skilled women. There is some evidence for an impact on completed fertility.

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“…Our empirical estimates show that the inflow of Czech workers leads to a moderate decline in average local wages and a 2. See, e.g., Card (1990), Hunt (1992), Carrington and Lima (1996), Friedberg (2001), Glitz (2012), Prantl and Spitz-Oener (2014) and Monras (2015a).…”

Section: Introductionmentioning

confidence: 99%

Labor Supply Shocks, Native Wages, and the Adjustment of Local Employment

2016

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By exploiting a commuting policy that led to a sharp and unexpected inflow of Czech workers to areas along the German-Czech border, we examine the impact of an exogenous immigration-induced labor supply shock on local wages and employment of natives. On average, the supply shock leads to a moderate decline in local native wages and a sharp decline in local native employment. These average effects mask considerable heterogeneity across groups: while younger natives experience larger wage effects, employment responses are particularly pronounced for older natives. This pattern is inconsistent with standard models of immigration but can be accounted for by a model that allows for a larger labor supply elasticity or a higher degree of wage rigidity for older than for young workers. We further show that the employment response is almost entirely driven by diminished inflows of natives into work rather than outflows into other areas or nonemployment, suggesting that "outsiders" shield "insiders" from the increased competition.

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Interacting Labor and Product Market Regulation and the Impact of Immigration on Native Wages

Cited by 4 publications

References 96 publications

The Effect of Immigration on Wages

The Effect of Immigration on Wages

The impact of a negative labor demand shock on fertility – Evidence from the fall of the Berlin Wall

Labor Supply Shocks, Native Wages, and the Adjustment of Local Employment

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