Do Immigrants Affect Firm-Specific Wages?

OPEN ARCHIVE

Union Jack
Dannebrog

Do Immigrants Affect Firm-Specific Wages?

Show full item record

Title: Do Immigrants Affect Firm-Specific Wages?
Author: Munch, Jakob Roland; Rose Skaksen, Jan; Malchow-Møller, Nikolaj
Abstract: In this paper, we propose and test a novel effect of immigration on the wages of native workers. 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, the use of immigrants may also affect wage formation at the most disaggregate level – the workplace. Using linked employeremployee data, we find that an increased use of workers from less developed countries 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 IV. Additional evidence suggests that this effect works at least partly through a general effect on the wage norm in the firm of hiring employees with poor outside options (the immigrants).
URI: http://hdl.handle.net/10398/7665
Date: 2008-12-01

Creative Commons License This work is licensed under a Creative Commons License.

Files Size Format View
wp7-2008.pdf 237.3Kb PDF View/Open

This item appears in the following Collection(s)

Show full item record