IDEAS home Printed from https://ideas.repec.org/p/rut/rutres/199802.html
   My bibliography  Save this paper

Do Immigrants Reduce Natives' Wages? Evidence from Germany

Author

Listed:
  • Thomas Bauer

    (IZA, University of Bonn, & CEPR, London)

Abstract

This paper investigates the effects of immigration on the wages of native workers in Germany. The analysis differentiates native and foreign workers according to their occupational status. The estimation of a translog production using 1990 cross section data reveals mixed results regarding the production relationship between different native and foreign groups. However, the effects of immigration on the wages of natives are numerically very small. Separability tests show that the use of an aggregate index for foreign labor and the treatment of natives and foreigners as similar inputs is not appropriate.

Suggested Citation

  • Thomas Bauer, 1998. "Do Immigrants Reduce Natives' Wages? Evidence from Germany," Departmental Working Papers 199802, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:199802
    as

    Download full text from publisher

    File URL: http://www.sas.rutgers.edu/virtual/snde/wp/1998-02.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 177-192.
    2. John P. Haisken-DeNew & Klaus F. Zimmermann, "undated". "Wage and Mobility Effects of Trade and Migration," Working Papers _001, SELAPO Center for Human Resources.
    3. George J. Borjas, 1987. "Immigrants, Minorities, and Labor Market Competition," ILR Review, Cornell University, ILR School, vol. 40(3), pages 382-392, April.
    4. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    5. Pischke, Jörn-Steffen & Velling, Johannes, 1994. "Wage and Employment Effects of Immigration to Germany: An Analysis Based on Local Labour Markets," CEPR Discussion Papers 935, C.E.P.R. Discussion Papers.
    6. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November.
    7. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November.
    8. Sato, Ryuzo & Koizumi, Tetsunori, 1973. "On the Elasticities of Substitution and Complementarity," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 44-56, March.
    9. Francisco L. Rivera-Batiz, 2018. "The Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," World Scientific Book Chapters, in: Francisco L Rivera-Batiz (ed.), International and Interregional Migration Theory and Evidence, chapter 4, pages 47-74, World Scientific Publishing Co. Pte. Ltd..
    10. Licht, Georg & Steiner, Viktor, 1993. "Assimilation, labour market experience, and earnings profiles of temporary and permanent immigrant workers in germany," ZEW Discussion Papers 93-06, ZEW - Leibniz Centre for European Economic Research.
    11. John P. Haisken-DeNew & Klaus F. Zimmermann, "undated". "Native Wage Impacts of Foreign Labor," Working Papers 9408, SELAPO Center for Human Resources.
    12. Denny, Michael & Fuss, Melvyn A, 1977. "The Use of Approximation Analysis to Test for Separability and the Existence of Consistent Aggregates," American Economic Review, American Economic Association, vol. 67(3), pages 404-418, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Herbert Brücker, 2003. "Die Arbeitsmarkteffekte der Ost-West-Migration: theoretische Überlegungen, Simulationen und empirische Befunde," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(4), pages 579-593.
    2. Simonetta LONGHI & Peter NIJKAMP & Jacques POOT, 2008. "Meta-Analysis Of Empirical Evidence On The Labour Market Impacts Of Immigration," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 27, pages 161-191.
    3. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2005. "A Meta‐Analytic Assessment of the Effect of Immigration on Wages," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 451-477, July.
    4. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
    5. repec:bla:germec:v:8:y:2007:i::p:536-560 is not listed on IDEAS
    6. Alessandra Venturini & Claudia Villosio, 2004. "Labour Market Effects of Immigration: an Empirical Analysis Based on Italian Data," CHILD Working Papers wp17_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    7. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, vol. 12(4), pages 355-387, December.
    8. Boeri, Tito & Brücker, Herbert, 2005. "Migration, Co-ordination Failures and EU Enlargement," IZA Discussion Papers 1600, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    2. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, February.
    3. Steinhardt Max Friedrich, 2011. "The Wage Impact of Immigration in Germany - New Evidence for Skill Groups and Occupations," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-35, June.
    4. Martin Kahanec & Klaus F. Zimmermann, 2008. "Migration, the Quality of the Labour Force and Economic Inequality," Discussion Papers of DIW Berlin 781, DIW Berlin, German Institute for Economic Research.
    5. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
    6. Steinhardt, Max Friedrich, 2006. "Arbeitsmarkt und Migration: Eine empirische Analyse der Lohn- und Beschäftigungseffekte der Zuwanderung für Deutschland," HWWI Research Papers 3-4, Hamburg Institute of International Economics (HWWI).
    7. Kwon, Chul-Woo & Chun, Bong Geul, 2011. "Relationship regarding the demand for labor between domestic temporary and foreign workers: Korean case," Japan and the World Economy, Elsevier, vol. 23(4), pages 240-245.
    8. Kahanec, Martin & Zimmermann, Klaus F., 2008. "Migration in an Enlarged EU: A Challenging Solution?," IZA Discussion Papers 3913, Institute of Labor Economics (IZA).
    9. Zweimuller, Josef & Winter-Ebmer, Rudolf, 1995. "Internal labor markets and firm-specific determination of earnings in the presence of immigrant workers," Economics Letters, Elsevier, vol. 48(2), pages 185-191, May.
    10. Zimmermann, Klaus F. & Kahanec, Martin, 2008. "International Migration, Ethnicity and Economic Inequality," CEPR Discussion Papers 6797, C.E.P.R. Discussion Papers.
    11. Simonetta LONGHI & Peter NIJKAMP & Jacques POOT, 2008. "Meta-Analysis Of Empirical Evidence On The Labour Market Impacts Of Immigration," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 27, pages 161-191.
    12. Bernhard H. Wittek & Samuel Muehlemann, 2021. "The consequences of EU eastern enlargement on human capital accumulation and wages in Germany," Economics of Education Working Paper Series 0184, University of Zurich, Department of Business Administration (IBW).
    13. Hammer, Luisa & Hertweck, Matthias S., 2022. "EU enlargement and (temporary) migration: Effects on labour market outcomes in Germany," Discussion Papers 02/2022, Deutsche Bundesbank.
    14. Karin Mayr, 2003. "Immigration and Majority Voting on Income Redistriubtion-Is there a Case for Opposition from Natives?," Economics working papers 2003-08, Department of Economics, Johannes Kepler University Linz, Austria.
    15. Gabriel J Felbermayr & Wilhelm Kohler, 2014. "Immigration and Native Welfare," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 10, pages 335-372, World Scientific Publishing Co. Pte. Ltd..
    16. Asadul Islam & Dietrich K. Fausten, 2008. "Skilled Immigration and Wages in Australia," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 66-82, September.
    17. Basu, Bharati, 2009. "Another look at mass migration and unions in Western Europe," Economic Modelling, Elsevier, vol. 26(5), pages 878-885, September.
    18. Francesco D’Amuri & Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The labor market impact of immigration in Western Germany in the 1990s," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 8, pages 223-243, World Scientific Publishing Co. Pte. Ltd..
    19. Brücker, Herbert & Hauptmann, Andreas & Jahn, Elke J. & Upward, Richard, 2014. "Migration and imperfect labor markets: Theory and cross-country evidence from Denmark, Germany and the UK," European Economic Review, Elsevier, vol. 66(C), pages 205-225.
    20. Gianmarco I.P. Ottaviano & Giovanni Peri, 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," NBER Working Papers 11672, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    immigration; separability; substitutability; wages;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rut:rutres:199802. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/derutus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.