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The role of labor market institutions in the impact of immigration on wages and employment

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  • Mette Foged
  • Linea Hasager
  • Vasil Yasenov

Abstract

We collect 1,030 previously estimated wage effects and 432 employment effects of immigration, and we document that the mean and median effects on the relative wage are negative and significantly different from the small positive mean and median effects on the average wage. The pattern is reversed for employment effects where the magnitudes are also smaller. Combining the effect sizes with measures of labor market institutions, we find that institutions might shield native workers from relative wage consequences but reduce the average wage effect of immigration. We do not detect a significant and robust association for the employment effects.

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  • Mette Foged & Linea Hasager & Vasil Yasenov, 2022. "The role of labor market institutions in the impact of immigration on wages and employment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 164-213, January.
    • Handle: RePEc:bla:scandj:v:124:y:2022:i:1:p:164-213
    DOI: 10.1111/sjoe.12452
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    3. Levai, Adam & Turati, Riccardo, 2024. "International Immigration and Labor Regulation," IZA Discussion Papers 16929, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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