Battiston, Diego (2013): The impact of immigration on the labour market: Evidence from 20 years of cross-border migration to Argentina.
Preview |
PDF
MPRA_paper_52424.pdf Download (1MB) | Preview |
Abstract
This paper studies the effects of immigration on the wages of Argentinean native workers over the period 1993-2012. I use a novel micro-dataset which combines household surveys from Argentina and six other Latin American countries. Immigration from these six countries accounts for 95% of the total immigration from Latin American countries. The empirical strategy identifies the effects of the labour supply variation using the “national approach” from Borjas (2003) and a reduced form equation obtained within a CES framework. In order to account for demand/pull shocks, I propose a set of instruments based on labour market conditions in immigrants’ home countries. An alternative specification also explores the hypothesis of heterogeneous impact by country of origin. Overall, findings show a significant negative impact of immigration on wages. IV estimates suggest that OLS results are a lower bound for the (partial) causal effect. Thus, if confounding demand factors exist, they bias the results toward zero.
Item Type: | MPRA Paper |
---|---|
Original Title: | The impact of immigration on the labour market: Evidence from 20 years of cross-border migration to Argentina |
English Title: | The impact of immigration on the labour market: Evidence from 20 years of cross-border migration to Argentina |
Language: | English |
Keywords: | immigration; wages; Argentina; labour market; cross-border migration; |
Subjects: | J - Labor and Demographic Economics > J0 - General J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J20 - General J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean |
Item ID: | 52424 |
Depositing User: | Diego Battiston |
Date Deposited: | 24 Dec 2013 06:44 |
Last Modified: | 28 Sep 2019 17:46 |
References: | Ackerberg, D. and Devereux P. (2006) "Comment on 'The case against JIVE" Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 835-838. Altonji, J. and Card, D. (1991) “The Effects of Immigration on the Labor Market Outcomesof Less-Skilled Natives,” in John Abowd and Richard B. Freeman, eds., Immigration, Trade and Labor, University of Chicago Press 1991. Angrist, J. D., Imbens G. and Krueger A. (1999) “Jackknife instrumental variables estimation”. Journal of Applied Econometrics 14: 57-67. Angrist, J. and Pischke, J (2008) “Mostly Harmless Econometrics: An. Empiricist's Companion” Princeton, NJ: Princeton University Press. Aydemir, A. and Borjas, G. (2011) "Attenuation Bias in Measuring the Wage Impact of Immigration," Journal of Labor Economics, University of Chicago Press, vol. 29(1), 69-113, 01. Blomquist, S. and Dahlberg, M. (1999) “Small sample properties of LIML and jackknife IV estimators: Experiments with weak instruments,” Journal of Applied Econometrics 14: 69-88. Borjas, G. (1987) "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September. Borjas, G. (2003) “The labor demand curve is downward sloping: reexamining the impact of immigration on the labor market,” The Quarterly Journal of Economics 118:1335-1374 Borjas, G., Freeman, R. and Katz, L. (1997) “How Much Do Immigration and Trade Affect Labor Market Outcomes?,” Brookings Papers on Economic Activity, (1), 1–90. Bratsberg, B., Raaum, O., Røed, M. and Schøne, P. (2010) "Immigration Wage Impacts by Origin," Norface Discussion Paper Series 2010-2, Norface Research Programme on Migration, Department of Economics, University College London. Card, D. (1990) “The Impact of the Mariel Boatlift on the Miami Labor Market,” Industrial and Labor Relations Review, 1990, 43 (2), 245–257. Card, D. (2001) “Immigrant Inflows, Native Outflows, and the Local Market Impacts of Higher Immigration,” Journal of Labor Economics, 19 (1), 22–64. Card, D, and DiNardo, J. (2000) “Do Immigrant Inflows Lead to Native Outflows?,” The American Economic Review, American Economic Association , 90 (2), 360–367. Card, D. and Lemieux, T. (2001) "Can Falling Supply Explain The Rising Return To College For Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 705-746, May. Castillo, J. and Gurrieri, J. (2012) “El panorama de las migraciones limítrofes y del Perú en la Argentina en el inicio del siglo XXI,” in Cuadernos Migratorios.-Nº2. Buenos Aires, Organización Internacional para las Migraciones, 17-50. Cavallo, A. (2013) “Online and official price indexes: Measuring Argentina's inflation, Journal of Monetary Economics,” Volume 60, Issue 2, March 2013, 152-165. Chiquiar, D. and Hanson, G. (2005) "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April. De Silva, D., McComb, R., Moh, Y., Schiller, A. and Vargas, A. (2010) "The Effect of Migration on Wages: Evidence from a Natural Experiment." American Economic Review, 100(2): 321-26. Dustmann, C. and Fabbri, F. (2003), "Language Proficiency and Labour Market Performance of Immigrants in the UK", Economic Journal, 113, 695-717, 2003. Dustmann, C. and Preston, I. (2011) "Estimating the Effect of Immigration on Wages," CReAM Discussion Paper Series 1121, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. Dustmann, C., Frattini, T. and Preston, I. (2012) “The Effect of Immigration along the Distribution of Wages,” The Review of Economic Studies: rds019v1-rds019. Gasparini, L. and Cruces, G. (2010) "Las Asignaciones Universales Por Hijo. Impacto, Discusión y Alternativas," CEDLAS, Working Papers 0102, CEDLAS, Universidad Nacional de La Plata Glitz, A. (2012) “The Labor Market Impact of Immigration: A Quasi-Experiment Exploiting Immigrant Location Rules in Germany,” Journal of Labor Economics, Vol. 30 (1), 175-213, 2012 Grogger, J. and Hanson, G. (2002) "Income maximization and the selection and sorting of international migrants," NBER Working Papers 13821, National Bureau of Economic Research, Inc. Grogger, J. and Hanson, G. (2011) "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May. Hahn, J. and Hausman, J. (2002) “Note on bias in estimators for simultaneous equation Models,” Economics Letters 75, 237-241 Hatton, T. and Williamson, J. (1998), “The Age of Mass Migration: Causes and Economic Impact” (New York: Oxford University Press). Hunt, J. (1992) "The impact of the 1962 repatriates from Algeria on the French labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), 556-572, April. Jachimowicz, M. (2006) “Argentina: A New Era of Migration and Migration Policy,” The Migration Information Source. Migration Policy Institute, n.d. Web. 10 Jan. 2013. <http://www.migrationinformation.org>. LaLonde, R. and Topel, R. (1991) "Labor Market Adjustments to Increased Immigration," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 167-199 National Bureau of Economic Research, Inc. Longhi, S. and Rokicka, M. (2012) "European immigrants in the UK before and after the 2004 enlargement: Is there a change in immigrant self-selection?," CReAM Discussion Paper Series 1232, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. MacKinnon, J. and Davidson, R. (2006) "The case against JIVE," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 827-833. Manacorda, M., Manning, A. and Wadsworth, J. (2012), "The Impact Of Immigration On The Structure Of Wages: Theory And Evidence From Britain," Journal of the European Economic Association, European Economic Association, vol. 10(1), 120-151, 02 Maurizio, R. (2007) “Migraciones internacionales en Argentina: un análisis de sus determinantes y de su relación con el mercado de trabajo,” Serie Nuevos Documentos CEDES, Nº 30, Buenos Aires, ISSN 1851-2429. Munshi, K. (2003) "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May. Ortega, J. and Verdugo, G. (2011) "Immigration and the Occupational Choice of Natives: a Factor Proportions Approach," ZA Discussion Papers 5451, Institute for the Study of Labor (IZA). Ottaviano, G. and Peri, G. (2012) “Rethinking the effects of immigration on wages,” Journal of the European Economic Association, vol. 10(1), 152-197. Pacceca M., and Courtis, C. (2008) “Inmigración contemporánea en Argentina: dinámicas y políticas,” Volume 84. Población y Desarrollo Series. Latin and Caribbean Demographic Centre (CELADE). Patel, K. and Vella, F. (2007) "Immigrant Networks and Their Implications for Occupational Choice and Wages," IZA Discussion Papers 3217, Institute for the Study of Labor (IZA). Pellegrino, A., and Vigorito, A. (2005) “Emigration and Economic Crisis: Recent Evidence from Uruguay,” Migraciones internacionales 3.001: 57-81. Peri, G. and Sparber, C. (2009) "Task Specialization, Immigration, and Wages," American Economic Journal: Applied Economics, 1(3): 135-69. Pischke, J. and Velling, J. (1997) “Employment Effects of Immigration to Germany: An Analysis Based on Local Labor Markets,” The Review of Economics and Statistics, 79 (4), 594–604. Solimano, A. (2003) "Development Cycles, Political Regimes and International Migration: Argentina in the twentieth century," Economic Development Division, No.22, ECLAC/CEPAL: Santiago, Chile, January. Stock, J., Wright, J. and Yogo, M. (2002) "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-29, October. Stock, J., and Yogo, M. (2002) "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc. Toussaint-Comeau, M. (2007) “The Relationship between Hispanic Immigrants’ Occupational Clustering and Wages in the U.S,” FRB of Chicago Working Paper. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/52424 |