Working Paper: NBER ID: w9755
Authors: George J. Borjas
Abstract: Immigration is not evenly balanced across groups of workers that have the same education but differ in their work experience, and the nature of the supply imbalance changes over time. This paper develops a new approach for estimating the labor market impact of immigration by exploiting this variation in supply shifts across education-experience groups. I assume that similarly educated workers with different levels of experience participate in a national labor market and are not perfect substitutes. The analysis indicates that immigration lowers the wage of competing workers: a 10 percent increase in supply reduces wages by 3 to 4 percent.
Keywords: No keywords provided
JEL Codes: J1; J6
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Immigration (F22) | Wages of competing native workers (J39) |
| 10% increase in immigrant supply (J69) | Wages of competing native workers (J39) |
| Immigration (F22) | Employment opportunities for natives (J68) |
| Characteristics of skill groups defined by education and work experience (J24) | Impact of immigration on wages (F66) |
| Historical context and economic conditions surrounding immigration policy (K37) | Observed effects of immigration (K37) |