Working Paper: NBER ID: w19315
Authors: Mette Foged; Giovanni Peri
Abstract: Using longitudinal data on the universe of workers in Denmark during the period 1991-2008 we track the labor market outcomes of low skilled natives in response to an exogenous inflow of low skilled immigrants. We innovate on previous identification strategies by considering immigrants distributed across municipalities by a refugee dispersal policy in place between 1986 and 1998. We find that an increase in the supply of refugee-country immigrants pushed less educated native workers (especially the young and low-tenured ones) to pursue less manual-intensive occupations. As a result immigration had positive effects on native unskilled wages, employment and occupational mobility.
Keywords: immigration; native workers; labor market outcomes; longitudinal data; Denmark
JEL Codes: F22; J24; J61
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increase in the supply of refugee-country immigrants (F22) | less educated native workers pursue less manual-intensive occupations (J69) |
| increase in refugee-country immigrant share (F22) | positive shift in occupational complexity (J62) |
| immigration (F22) | positive effects on native unskilled wages (F66) |
| immigration (F22) | positive effects on native employment (J68) |
| immigration (F22) | positive effects on occupational mobility (J62) |