Immigration and Wages: Evidence from Construction

To identify wage impacts of immigration, we use licensing requirements in the Norwegian construction sector that give rise to exogenous variation in immigrant employment across trades. Individual panel data reveal lower wage growth in trades with rising immigrant employment shares, with a 10% increa...

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Veröffentlicht in:The Economic journal (London) 2012-12, Vol.122 (565), p.1177-1205
Hauptverfasser: Bratsberg, Bernt, Raaum, Oddbjørn
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Raaum, Oddbjørn
description To identify wage impacts of immigration, we use licensing requirements in the Norwegian construction sector that give rise to exogenous variation in immigrant employment across trades. Individual panel data reveal lower wage growth in trades with rising immigrant employment shares, with a 10% increase in immigration predicted to reduce wages by 0.6%. Selective attrition masks the causal wage impact if neglected. For low and semi-skilled workers, wage effects are comparable for natives and older immigrant cohorts, consistent with perfect substitutability between native and immigrant labour within trade. Price data indicate that wage and cost reductions are passed on to consumers.
doi_str_mv 10.1111/j.1468-0297.2012.02540.x
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source Jstor Complete Legacy; Oxford University Press Journals All Titles (1996-Current); Wiley Online Library Journals Frontfile Complete; Business Source Complete
subjects Causal analysis
Construction industries
Construction industry
Construction workers
Educational attainment
Electrical trades
Employment
Estimation bias
Immigration
Immigration policy
Impact analysis
Labor markets
Licensing
Migrant workers
Noncitizens
Norway
Payroll
Plumbing
Requirements
Studies
Wage rates
Wages
Wages & salaries
title Immigration and Wages: Evidence from Construction
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