Do immigrants take or create residents’ jobs?
Quasi-experimental evidence from Switzerland
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Date
2013-05
Publication Type
Working Paper
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yes
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Abstract
We estimate the causal effect of immigration on the labor market outcomes of resident employees in Switzerland, whose foreign labor force has increased by 32.8% in the last decade. To address endogeneity of immigration into different labor market cells, we develop new variants of the shift-share instrument, tailored for small-open economies, that exploit only that part in the variation of immigration which can be explained by migration push-factors in the source countries. We find that immigration has reduced unemployment of residents and has enabled them to fill more demanding jobs, while it had no adverse effect on wages and employment.
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published
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Journal / series
Volume
335
Pages / Article No.
Publisher
KOF Swiss Economic Institute, ETH Zurich
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Subject
UNEMPLOYMENT; EINWANDERUNG (INNENPOLITIK); Immigration; LABOUR MARKET AND EMPLOYMENT; ARBEITSMARKT UND BESCHÄFTIGUNG; Labor shortage; Shift-share instrument; SCHWEIZ (MITTELEUROPA). SCHWEIZERISCHE EIDGENOSSENSCHAFT; SWITZERLAND (CENTRAL EUROPE). SWISS CONFEDERATION; ARBEITSLOSIGKEIT; IMMIGRATION (INTERNAL POLITICS); Native employment
Organisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute