Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145248
Authors: 
Dustmann, Christian
Schönberg, Uta
Stuhler, Jan
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10114
Abstract: 
By exploiting a commuting policy that led to a sharp and unexpected inflow of Czech workers to areas along the German-Czech border, we examine the impact of an exogenous immigration-induced labor supply shock on local wages and employment of natives. On average, the supply shock leads to a moderate decline in local native wages and a sharp decline in local native employment. These average effects mask considerable heterogeneity across groups: while younger natives experience larger wage effects, employment responses are particularly pronounced for older natives. This pattern is inconsistent with standard models of immigration but can be accounted for by a model that allows for a larger labor supply elasticity or a higher degree of wage rigidity for older than for young workers. We further show that the employment response is almost entirely driven by diminished inflows of natives into work rather than outflows into other areas or non-employment, suggesting that "outsiders" shield "insiders" from the increased competition.
Subjects: 
immigration
wage effects
labor supply elasticity
internal migration
JEL: 
J21
J22
J61
R23
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.