Immigration Wage Effects by Origin

38 Pages Posted: 13 Mar 2014

See all articles by Bernt Bratsberg

Bernt Bratsberg

Kansas State University - Department of Economics; University of Oslo - Ragnar Frisch Centre for Economic Research

Oddbjorn Raaum

University of Oslo - Ragnar Frisch Centre for Economic Research

Marianne Røed

Institute for Social Research, Norway

Pål Schone

Institute for Social Research, Norway

Date Written: April 2014

Abstract

We estimate the direct partial wage effects of immigrant‐induced increases in labor supply, using the national skill cell approach with longitudinal records drawn from Norwegian administrative registers. The results show overall negative but heterogeneous wage effects, with larger effects on immigrant wages than on native wages and with native wages more responsive to inflows from Nordic countries than from developing countries. These patterns are consistent with natives and Nordic citizens being close substitutes, while natives and immigrants from developing countries are imperfect substitutes. Estimates are sensitive to accounting for effective immigrant experience, selective native participation, and variation in demand conditions and native labor supply.

Keywords: Immigration, labor‐market effect, wages

JEL Classification: F22, J31, J61

Suggested Citation

Bratsberg, Bernt and Raaum, Oddbjørn and Røed, Marianne and Schone, Pål, Immigration Wage Effects by Origin (April 2014). The Scandinavian Journal of Economics, Vol. 116, Issue 2, pp. 356-393, 2014, Available at SSRN: https://ssrn.com/abstract=2408835 or http://dx.doi.org/10.1111/sjoe.12053

Bernt Bratsberg (Contact Author)

Kansas State University - Department of Economics ( email )

Manhattan, KS 66502-4001
United States

University of Oslo - Ragnar Frisch Centre for Economic Research

Gaustadalleen 21
N-0349 Oslo
Norway

Oddbjørn Raaum

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

Marianne Røed

Institute for Social Research, Norway ( email )

Munthesgate 31
0260 Oslo
Norway

Pål Schone

Institute for Social Research, Norway ( email )

Munthesgate 31
0260 Oslo
Norway

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