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Immigration, Working Conditions, and Compensating Differentials

Author

Listed:
  • Sparber, Chad

    (Colgate University)

  • Zavodny, Madeline

    (University of North Florida)

Abstract

The large inflow of less-educated immigrants that the United States has received in recent decades can worsen or improve U.S. natives' labor market opportunities. Although there is a general consensus that low-skilled immigrants tend to hold "worse" jobs than U.S. natives, the impact of immigration on U.S. natives' working conditions has received little attention. This study examines how immigration affected U.S. natives' occupational exposure to workplace hazards and the return to such exposure over 1990 to 2018. The results indicate that immigration causes less-educated U.S. natives' exposure to workplace hazards to fall, and instrumental variables results show a larger impact among women than among men. The compensating differential paid for hazard exposure appears to fall as well, but not after accounting for immigration-induced changes in the returns to occupational skills.

Suggested Citation

  • Sparber, Chad & Zavodny, Madeline, 2020. "Immigration, Working Conditions, and Compensating Differentials," IZA Discussion Papers 13663, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13663
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    Cited by:

    1. Bossavie,Laurent Loic Yves & Garrote Sanchez,Daniel & Makovec,Mattia & Ozden,Caglar, 2020. "Do Immigrants Push Natives towards Safer Jobs ? Exposure to COVID-19 in the European Union," Policy Research Working Paper Series 9500, The World Bank.

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    More about this item

    Keywords

    immigration; hazardous jobs; compensating differentials; risk premium;
    All these keywords.

    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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