The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market

55 Pages Posted: 8 Jun 2003 Last revised: 3 Nov 2010

See all articles by George J. Borjas

George J. Borjas

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Date Written: June 2003

Abstract

Immigration is not evenly balanced across groups of workers that have the same education but differ in their work experience, and the nature of the supply imbalance changes over time. This paper develops a new approach for estimating the labor market impact of immigration by exploiting this variation in supply shifts across education-experience groups. I assume that similarly educated workers with different levels of experience participate in a national labor market and are not perfect substitutes. The analysis indicates that immigration lowers the wage of competing workers: a 10 percent increase in supply reduces wages by 3 to 4 percent.

Suggested Citation

Borjas, George J., The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market (June 2003). NBER Working Paper No. w9755. Available at SSRN: https://ssrn.com/abstract=414253

George J. Borjas (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-495-1393 (Phone)
617-495-9532 (Fax)

National Bureau of Economic Research (NBER)

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