Do Immigrants Affect Firm-Specific Wages?
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Do Immigrants Affect Firm-Specific Wages? / Malchow-Møller, Nikolaj; Munch, Jakob R.; Skaksen, Jan Rose.
In: Scandinavian Journal of Economics, Vol. 114, No. 4, 2012, p. 1267-1295.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Do Immigrants Affect Firm-Specific Wages?
AU - Malchow-Møller, Nikolaj
AU - Munch, Jakob R.
AU - Skaksen, Jan Rose
N1 - JEL Classification: F22;J31;J61
PY - 2012
Y1 - 2012
N2 - We propose and test a novel effect of immigration on wages. Existing studies have focused on the wage effects that result from changes in the aggregate labour supply in a competitive labour market. We argue that if labour markets are not fully competitive, immigrants might also affect wage formation at the most disaggregate level – the workplace. Using linked employer-employee data, we find that an increased use of low-skilled immigrant workers has a significantly negative effect on the wages of native workers at the workplace – also when controlling for potential endogeneity of the immigrant share using both fixed effects and instrumental variables
AB - We propose and test a novel effect of immigration on wages. Existing studies have focused on the wage effects that result from changes in the aggregate labour supply in a competitive labour market. We argue that if labour markets are not fully competitive, immigrants might also affect wage formation at the most disaggregate level – the workplace. Using linked employer-employee data, we find that an increased use of low-skilled immigrant workers has a significantly negative effect on the wages of native workers at the workplace – also when controlling for potential endogeneity of the immigrant share using both fixed effects and instrumental variables
KW - Faculty of Social Sciences
KW - Immigration
KW - imperfect labour markets
KW - natives
KW - wage formation
U2 - 10.1111/j.1467-9442.2012.01720.x
DO - 10.1111/j.1467-9442.2012.01720.x
M3 - Journal article
VL - 114
SP - 1267
EP - 1295
JO - Scandinavian Journal of Economics
JF - Scandinavian Journal of Economics
SN - 0347-0520
IS - 4
ER -
ID: 37771355