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| Title: | | Do immigrants affect firm-specific wages?  |
| Authors: | | Malchow-Møller, Nikolaj Munch, Jakob Roland Skaksen, Jan Rose |
| Issue Date: | | 2007 |
| Series/Report no.: | | IZA Discussion Papers 3264 |
| 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 employer-employee 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). |
| Subjects: | | Immigration firm-specific wages outside options |
| JEL: | | F22 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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