Joint impacts of immigration on wages and employment: review and meta-analysis |
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Authors: | S Longhi P Nijkamp J Poot |
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Institution: | (1) Institute for Social and Economic Research, University of Essex, Colchester, UK;(2) Department of Spatial Economics, VU University, Amsterdam, The Netherlands;(3) Population Studies Centre, University of Waikato, Hamilton, New Zealand;; |
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Abstract: | A burgeoning literature has emerged during the last two decades to assess the economic impacts of immigration on host countries.
In this paper, we outline the quantitative approaches presented in the literature to estimate the impact of immigration on
the labour market, particularly at the regional level. We then revisit the joint impacts of immigration on wages and employment
using a meta-analytic approach. As a novel contribution to previous meta-analyses on labour market impacts, we use a simultaneous
equations approach to the meta-analysis of wage and employment effects. Using 129 effect sizes, we find that the observed
local wage and employment effects are very small indeed. Generally, the employment impact is more pronounced in Europe than
in the United States. Controls for endogeneity show a somewhat more negative impact. Wage rigidity increases the magnitude
of the employment impact on the native born. The demarcation of the local labour market in terms of geography and skills matters
also. |
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Keywords: | |
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