Wage and Employment Effects of Immigration: Evidence from Korea

37 Pages Posted: 23 Dec 2020 Last revised: 5 Feb 2021

See all articles by Hyejin Kim

Hyejin Kim

Bank of Korea - Economic Research Institute

Date Written: December 21, 2020

Abstract

English Abstract: This paper studies the impact of immigration on native labor market outcomes in Korea. We exploit the variation in immigration flows in an education-experience cell and find that, on average, immigration has no harmful effect on the wages or employment of native workers. However, there is great heterogeneity in the wage effects across education groups: high school dropouts suffer from the adverse effects, whereas the effects for college graduates are positive. We find the potential explanation for these differential effects in the suggestive evidence on the degree of substitution. Specifically, we examine the similarity of occupational distribution between natives and immigrants. While the least-educated natives and immigrants have almost identical occupation distributions, highly educated natives are likely to work in different occupational segments from the corresponding immigrants.

Keywords: Immigration, Wages, Employment, Occupational Segmentation

JEL Classification: J15, J31, J61

Suggested Citation

Kim, Hyejin, Wage and Employment Effects of Immigration: Evidence from Korea (December 21, 2020). Bank of Korea WP 2020-30, Available at SSRN: https://ssrn.com/abstract=3752539 or http://dx.doi.org/10.2139/ssrn.3752539

Hyejin Kim (Contact Author)

Bank of Korea - Economic Research Institute ( email )

110, 3-Ga, Namdaemunno, Jung-Gu
Seoul 100-794
Korea, Republic of (South Korea)

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