Skill Differences and the Effect of Immigrants on the Wages of Natives

Posted: 19 May 1998

See all articles by David A. Jaeger

David A. Jaeger

Ph.D. Program in Economics, City University of New York Graduate Center; National Bureau of Economic Research (NBER); University of Cologne - Department of Economics; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); University College London - CReAM - Centre for Research and Analysis of Migration

Date Written: March 1996

Abstract

This paper examines the effects of changes in the supply of immigrant labor on the wages of natives. Estimates are presented indicating that immigrants and natives are nearly perfect substitutes within broad skill categories. This result is then used to calculate the effects of the large influx of immigrants to the U.S. labor market during the 1980s. The calculations presented suggest that immigration depressed the wages of native dropouts by as much as 3 percent and can account for possibly as much as 24 percent of the increase in the college-high school wage differential during the decade.

JEL Classification: J31, J61

Suggested Citation

Jaeger, David A., Skill Differences and the Effect of Immigrants on the Wages of Natives (March 1996 ). Available at SSRN: https://ssrn.com/abstract=3128

David A. Jaeger (Contact Author)

Ph.D. Program in Economics, City University of New York Graduate Center ( email )

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