Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data

50 Pages Posted: 6 Apr 2015

See all articles by Mette Foged

Mette Foged

University of Copenhagen, Department of Economics

Giovanni Peri

University of California, Davis - Department of Economics

Abstract

Using longitudinal data on the universe of workers in Denmark during the period 1991-2008 we track the labor market outcomes of low skilled natives in response to an exogenous inflow of low skilled immigrants. We innovate on previous identification strategies by considering immigrants distributed across municipalities by a refugee dispersal policy in place between 1986 and 1998. We find that an increase in the supply of refugee-country immigrants pushed less educated native workers (especially the young and low-tenured ones) to pursue less manual-intensive occupations. As a result immigration had positive effects on native unskilled wages, employment and occupational mobility.

Keywords: refugees, dispersal policy, manual skills, employment, wages

JEL Classification: F22, J24, J61

Suggested Citation

Foged, Mette and Peri, Giovanni, Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data. IZA Discussion Paper No. 8961. Available at SSRN: https://ssrn.com/abstract=2589823

Mette Foged (Contact Author)

University of Copenhagen, Department of Economics ( email )

Oester Farigmagsgade 5, Building 26
Copenhagen K, 1353
+45 35323582 (Phone)

HOME PAGE: http://www.econ.ku.dk/foged/default.htm

Giovanni Peri

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
530-752-3033 (Phone)
530-752-9382 (Fax)

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