Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324822 
Year of Publication: 
2025
Series/Report no.: 
Upjohn Institute Working Paper No. 25-419
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
What is the effect of immigration on native labor-market outcomes? An extensive literature identifies the differential impact of immigration on natives employed in jobs that are more exposed to immigrant labor (supply exposure). But immigrants consume in addition to producing output. Despite this, no literature identifies the impact on natives employed in jobs that are more exposed to immigrant consumption (demand exposure). We study native labormarket effects of supply and demand exposures to immigration. Theoretically, we formalize both measures of exposure and solve for their effects on native wages. Empirically, we combine employer-employee data with a newly collected data set covering electronic payments for the universe of residents in Norway to measure supply and demand exposures of all native workers to immigration induced by EU expansions in 2004 and 2007. We find large, positive, and persistent effects of demand exposure to EU expansion on native worker income.
Subjects: 
Immigration
native workers
income
two-sector
demand shocks
Norway
JEL: 
F22
J21
J23
J31
J61
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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