Does immigration affect wages? A look at occupation-level evidence |
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| Affiliation: | 1. Economics Department, Queens College, City University of New York, Powdermaker Hall, 65-30 Kissena Blvd, Flushing, New York 11367, United States;2. University of California, Davis, One Shields Avenue, Davis, CA 95616, United States;3. NBER, United States;1. Stanford University, Department of Political Science, Graduate School of Business, 616 Serra Street Encina Hall West, Stanford, CA 94305, United States;2. Harvard University, Department of Government, 1737 Cambridge Street, Cambridge, MA 02138, United States;3. Tel Aviv University, Department of Political Science, P O Box 39040, Tel Aviv 6967801, Israel;1. CEPII, 113 rue de Grenelle, Paris 75007, France;2. Department of Economics UC Davis, One shield Avenue, Davis, CA 95616, USA;1. Erlangen-Nuremberg University, Chair of Labour and Regional Economics, Lange Gasse 20, 90403 Nuremberg, Germany;2. IAB, Aarhus University, and IZA, Regensburger Str. 104, 90478 Nuremberg, Germany;3. Tartu University, Department of Economics, Narva 4, Tartu 51009, Estonia;4. University of Michigan, Institute for Social Research, and IAB, 426 Thompson Street, Ann Arbor, MI 48104, USA;1. Harvard University, United States;2. Kansas State University, United States |
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| Abstract: | ![]()
Previous research has reached mixed conclusions about the effect of higher levels of immigration on the wages of natives. This paper reexamines this question using data from the Current Population Survey and the Immigration and Naturalization Service and focuses on differential effects by skill level. Using occupation as a proxy for skill, we find that an increase in the fraction of foreign-born workers tends to lower the wages of natives in blue collar occupations—particularly after controlling for endogeneity—but does not have a statistically significant negative effect among natives in skilled occupations. The results also indicate that immigrants adjusting their immigration status within the U.S., but not newly arriving immigrants, have a significant negative impact on the wages of low-skilled natives. This suggests that immigrants become closer substitutes for natives as they spend more time in the U.S. |
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