Labor Market Effects of Immigration: Evidence from Neighborhood Data

16 Pages Posted: 16 Apr 2013

See all articles by Thomas Bauer

Thomas Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Regina Flake

Ruhr Graduate School in Economics

Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy

Multiple version iconThere are 2 versions of this paper

Date Written: May 2013

Abstract

This paper combines individual‐level data from the German Socio‐Economic Panel (SOEP) with economic and demographic postcode‐level data from administrative records to analyze the effects of immigration on wages and unemployment probabilities of high‐ and low‐skilled natives. Employing an instrumental variable strategy and utilizing the variation in the population share of foreigners across regions and time, we find no support for the hypothesis of adverse labor market effects of immigration. Instead, we find a positive effect of immigration on the employment probabilities of high‐skilled natives.

Suggested Citation

Bauer, Thomas and Flake, Regina and Sinning, Mathias, Labor Market Effects of Immigration: Evidence from Neighborhood Data (May 2013). Review of International Economics, Vol. 21, Issue 2, pp. 370-385, 2013, Available at SSRN: https://ssrn.com/abstract=2251701 or http://dx.doi.org/10.1111/roie.12042

Thomas Bauer (Contact Author)

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Regina Flake

Ruhr Graduate School in Economics ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

HOME PAGE: http://www.mathiassinning.com

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