Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80831
Authors: 
Basten, Christoph Carl
Siegenthaler, Michael
Year of Publication: 
2013
Series/Report no.: 
KOF Working Papers, KOF Swiss Economic Institute, ETH Zurich 335
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.
Subjects: 
Immigration
native employment
labor shortage
shift-share instrument
JEL: 
F22
J21
J61
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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