Immigration, wages, and education : a labour market equilibrium structural model
Llull Cabrer, Joan (Universitat Autònoma de Barcelona. Departament d'Economia i d'Història Econòmica)
Universitat Autònoma de Barcelona. Departament d'Economia i d'Història Econòmica

Date:	2018
Abstract:	Recent literature analysing wage effects of immigration assumes labour supply is fixed across education-experience cells. This article departs from this assumption estimating a labour market equilibrium dynamic discrete choice model on U. S. micro-data for 1967-2007. Individuals adjust to immigration by changing education, participation, and/or occupation. Adjustments are heterogeneous: 4. 2-26. 2% of prime-aged native males change their careers; of them, some switch to white-collar careers and increase education by about three years; others reduce labour market attachment and reduce education also by about three years. These adjustments mitigate initial effects on wages and inequality. Natives that are more similar to immigrants are the most affected on impact, but also have a larger margin to adjust and differentiate. Adjustments also produce a self-selection bias in the estimation of wage effects at the lower tail of the distribution, which the model corrects.
Grants:	European Commission 263600 Ministerio de Economía y Competitividad ECO2014-59056-JIN Ministerio de Ciencia e Innovación SEV-2011-0075 Ministerio de Economía y Competitividad SEV-2015-0563
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Language:	Anglès
Document:	Article ; recerca ; Versió acceptada per publicar
Subject:	Immigration ; Wages ; Human Capital ; Labor Supply ; Dynamic Discrete Choice ; Labor Market Equilibrium
Published in:	The Review of economic studies, Vol. 85 Núm. 3 (2018) , p. 1852-1896, ISSN 1467-937X

DOI: 10.1093/restud/rdx053

Postprint 62 p, 1.3 MB

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