Does Immigration Affect Wages? A Look at Occupation-Level Evidence
FRB of Atlanta Working Paper No. 2003-2
35 Pages Posted: 3 Apr 2003
Date Written: December 2006
Abstract
Previous research has reached mixed conclusions about the effect of higher levels of immigration on the wages of natives. This paper reexamines this question using data from the Current Population Survey and the Immigration and Naturalization Service and focuses on differential effects by skill level. Using occupation as a proxy for skill, we find that an increase in the fraction of foreign-born workers tends to lower the wages of natives in blue collar occupations - particularly after controlling for endogeneity - but does not have a statistically significant negative effect among natives in skilled occupations. The results also indicate that immigrants adjusting their immigration status within the U.S., but not newly arriving immigrants, have a significant negative impact on the wages of low-skilled natives. This suggests that immigrants become closer substitutes for natives as they spend more time in the U.S.
Keywords: immigrants, natives, wages
JEL Classification: J61
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Impact of the Mariel Boatlift on the Miami Labor Market
By David Card
-
Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration
By David Card
-
The Effects of Immigration on the Labor Market Outcomes of Natives
By Joseph G. Altonji and David Card
-
Searching for the Effect of Immigration on the Labor Market
By George J. Borjas, Richard B. Freeman, ...
-
Is the New Immigration Really so Bad?
By David Card
-
Is the New Immigration Really so Bad?
By David Card