The Labor Market Effects of Immigration

Author(s):  
Özlem İnanç-Tunçer

This chapter discusses the effects of immigration on the labor market of receiving countries, focusing on employment. The effect of immigration on the welfare of native population is an important issue in public debate. The common perception is, at least in the short run, because of immigration, unemployment rates would increase in the host countries, or that immigrants would depress wages of native workers. However, these perceptions do not find confirmation in the previous research on this literature. According to Jean and Jimenez (2011), the evidence is, at best, mixed. Although the magnitude of the impact depends on time and space, in general, results of the previous literature indicate that immigration has only very small or no effect on employment and wages of resident workers. The aim of this chapter is to provide an overview of immigration-labor market relation for different countries and time intervals with some significant policy implications with regards to state officials.

Author(s):  
Özlem İnanç-Tunçer

This chapter discusses the effects of immigration on the labor market of receiving countries, focusing on employment. The effect of immigration on the welfare of native population is an important issue in public debate. The common perception is, at least in the short run, because of immigration, unemployment rates would increase in the host countries, or that immigrants would depress wages of native workers. However, these perceptions do not find confirmation in the previous research on this literature. According to Jean and Jimenez (2011), the evidence is, at best, mixed. Although the magnitude of the impact depends on time and space, in general, results of the previous literature indicate that immigration has only very small or no effect on employment and wages of resident workers. The aim of this chapter is to provide an overview of immigration-labor market relation for different countries and time intervals with some significant policy implications with regards to state officials.


ILR Review ◽  
1980 ◽  
Vol 33 (3) ◽  
pp. 331-341 ◽  
Author(s):  
George E. Johnson

This paper is a theoretical examination of the probable effects on the U.S. labor market of a continued high rate of illegal immigration. The author constructs a model to estimate the impact each additional immigrant has on the employment of the domestic population, on GNP, and on the distribution of income. The model suggests that in non-recessionary periods the most important effect of a high rate of immigration is on the wage rates of low-skilled labor rather than on the employment of low-skilled native workers, but immigration also increases the earnings of high-skilled workers and the owners of capital. In the very long run, the author concludes, this redistribution of income will be offset to some extent by increases in the supplies of skilled labor and capital.


2000 ◽  
Vol 9 (1) ◽  
pp. 93-129 ◽  
Author(s):  
Graeme Hugo

Indonesia is the country most affected by the Asian financial crisis which began in mid-1997 and has been the slowest to recover from it. In the present paper the effects of the first two and a half years of the crisis on international population movements influencing Indonesia are discussed. The crisis has increased economic pressures on potential migrant workers in Indonesia and the result has been increased out-movement. In both pre and post-crisis situations this was dominated by women, at least among official migrant workers. The crisis has tightened the labor market in some of Indonesia's main destination countries but the segmentation of the labor market in those countries has limited the impact of the crisis in reducing jobs in those countries. The crisis has created more pressure on undocumented migrants in destination countries but the extent of repatriation, while higher than in the pre-crisis situation, has been limited. The crisis has directly or indirectly affected other international movements influencing Indonesia including expatriate movement to Indonesia and longer-term, south-north migration out of the country. The policy implications of these changes are discussed including the fact that the crisis has led to an increased appreciation of the importance of contract labor migration by government and greater attention being paid to improving the system for migrants themselves and the country as a whole.


ILR Review ◽  
2019 ◽  
Vol 72 (4) ◽  
pp. 818-857 ◽  
Author(s):  
Michael A. Clemens ◽  
Jennifer Hunt

Studies have reached conflicting conclusions regarding the labor market effects of exogenous refugee waves such as the Mariel Boatlift in Miami. The authors show that contradictory findings on the effects of the Mariel Boatlift can be explained by a large difference in the pre- and post-Boatlift racial composition in certain very small subsamples of workers in the Current Population Survey. This compositional change is specific to Miami and unrelated to the Boatlift. They also show that conflicting findings on the labor market effects of other important refugee waves are caused by spurious correlation in some analyses between the instrument and the endogenous variable, introduced by applying a common divisor to both. As a whole, the evidence from refugee waves reinforces the existing consensus that the impact of immigration on average native-born workers is small, and it fails to substantiate claims of large detrimental effects on workers with less than a high school education.


2015 ◽  
Vol 42 (4) ◽  
pp. 356-367
Author(s):  
Faridul Islam ◽  
Saleheen Khan

Purpose – The purpose of this paper is to examine the dynamic relationship among immigration rate, GDP per capita, and and real wage rates in the USA. Design/methodology/approach – The paper implements the Johansen-Juselius (1990, 1992) cointegration technique to test for a long-run relationship; and for short-run dynamics the authors apply Granger causality tests under the vector error-correction model. Findings – The results show that the long-run causality runs from GDP per capita to immigration, not vice versa. Growing economy attracts immigrants. The authors also find that immigration flow depresses average weekly earnings of the natives in the long-run. Originality/value – The authors are not aware of any study on the USA addressing the impact of immigrants on labor market using a tripartite approach by explicitly incorporating economic growth. It is therefore important to pursue a theoretically justified empirical model in search of a relation to resolve on apparent immigration debate.


2019 ◽  
Vol 22 (2) ◽  
pp. 76-91
Author(s):  
Abrar Gaffari ◽  
Dwini Handayani

Motivated from the employment report which reveals the still high percentage of NEE in Indonesia, using the IFLS5 data we conduct studies related to the impact of sosio-demographic characteristics and local indicators and labor markets on NEE young age. NEE is a heterogeneous population based on attitudes and time availability from a young age towards work (Salvà-Mut, Tugores-Ques, Quintana-Murci, 2017) so that grouping can capture patterns of vulnerability and young age transition decisions to the labor market which is produce appropriate recommendations. The estimation results indicate that NEE carers-cared have characteristics as young women, low education, married status and come from underprivileged backgrounds and tend to be in rural areas with high local unemployment rates. While NEE unemployed is also characterized by young age, but the dominant of men with unmarried status and education is higher than non-NEE, besides it tends to be in urban areas and is influenced by high local unemployment rates. However, it is different from the previous categories, although NEE discourage is also young, male dominated and education level is low. But this category is not affected by regional indicators and the local labor market, due to their lack of perceptions and attitudes towards work. Termotivasi dari laporan ketenagakerjaan yang mengungkapkan masih tingginya persentase NEE di Indonesia, maka dengan menggunakan data IFLS5 kami melakukan kajian terkait dampak karakteristik-karakteristik individu, pendidikan, latar belakang keluarga dan indikator wilayah dan pasar kerja lokal terhadap usia muda yang NEE. Kami tertarik untuk meneliti NEE sebagai populasi yang heterogen dengan cara mengelompokkannya berdasarkan atas sikap dan ketersediaan waktu dari usia muda terhadap pekerjaan (Salvà-Mut, Tugores-Ques, Quintana-Murci, 2017), agar dapat menangkap pola kerentanan dan keputusan transisi usia muda ke pasar kerja sehingga dapat dihasilkan rekomendasi kebijakan yang tepat. Hasil estimasi menunjukkan bahwa NEE carers-cared mempunyai karakteristik sebagai perempuan yang berusia muda, tingkat pendidikan rendah, berstatus sudah menikah dan berasal dari latar belakang keluarga yang kurang beruntung terkait ekonomi dan cenderung di pedesaan dengan tingkat pengangguran lokal yang tinggi. Sedangkan NEE unemployed juga mempunyai karakteristik berusia muda, tapi dominan berjenis kelamin laki-laki dengan status belum menikah dan tingkat pendidikan lebih tinggi dibandingkan dengan bukan NEE, selain itu kategori ini cenderung di perkotaan dan juga dipengaruhi oleh tingkat pengangguran lokal yang tinggi. Namun berbeda dengan dua kategori sebelumnya, walaupun discourage juga cenderung berusia muda, berjenis kelamin laki-laki dan tingkat pendidikan rendah, tapi usia muda ini tidak terpengaruh oleh indikator wilayah dan pasar kerja lokal. Hal ini dikarenakan kurangnya persepsi dan sikap terhadap pekerjaan. 


Author(s):  
Siriwan Saksiriruthai

This chapter focuses on Thailand's foreign labor migration, which has played a critical role in the economic development of Thailand. Emphasizing both positive and negative effects of foreign migration to the Thai labor market, Thailand economy, and sustainability in economic development, this chapter separates foreign migrant workers into two types, legal and illegal, and analyzes the impact of each type of migrant worker on wages, labor market, Thai economy, innovation, and sustainability. While foreign skilled laborers, who usually receive formal work permits from the Thai government, as well as capital and native workers are complements, the unskilled or low-skilled workers, usually from neighbor countries, as well as capital and native workers, are substitutes. Furthermore, the impact of each group of foreign migrants on economic development and government reactions (as reflected in migration policies) is also elaborated before discussion for migration and development in the long term.


2020 ◽  
Vol 8 (4) ◽  
pp. 589-615
Author(s):  
Gilberto Tadeu Lima ◽  
Jaylson Jair da Silveira

This paper investigates the impact on capacity utilization and economic growth as variables driven by effective demand of income distribution featuring the possibility of profit-sharing with workers. Firms choose to compensate workers with either a base wage or a share of profits on top of this base wage. In accordance with robust empirical evidence, workers in sharing firms have higher productivity than workers in non-sharing firms. The distribution of employee compensation strategies and labor productivity across firms is evolutionarily time-varying. Two major results carrying relevant theoretical and policy implications are obtained. First, heterogeneity in employee compensation strategies across firms (and therefore earnings inequality across workers) may emerge as a long-run equilibrium outcome. Second, beyond the short run, a higher fraction of profit-sharing firms may result in either higher or lower rates of capacity utilization and economic growth.


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