Leadership

The Heterogeneous Labor Market Effects Of Immigration

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Executive Summary

In this paper the author provides estimates of the impact of immigration on native wage and employment levels (rather than on wage inequality which has been the focus of the literature). The author uses variation within 2-digit industries across regions using Austrian panel data from 1986 to 2004 for identification. Using an instrumental variable strategy the author finds large displacement effects in the service sector and large native employment increases in manufacturing due to immigration.

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