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Labor Market Effects of Immigration: Evidence from Neighborhood Data
Author(s) -
Bauer Thomas K.,
Flake Regina,
Sinning Mathias G.
Publication year - 2013
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12042
Subject(s) - immigration , german , unemployment , economics , instrumental variable , panel data , demographic economics , variable (mathematics) , population , variation (astronomy) , labour economics , econometrics , geography , macroeconomics , demography , sociology , mathematical analysis , physics , mathematics , archaeology , astrophysics
This paper combines individual‐level data from the German Socio‐Economic Panel ( SOEP ) with economic and demographic postcode‐level data from administrative records to analyze the effects of immigration on wages and unemployment probabilities of high‐ and low‐skilled natives. Employing an instrumental variable strategy and utilizing the variation in the population share of foreigners across regions and time, we find no support for the hypothesis of adverse labor market effects of immigration. Instead, we find a positive effect of immigration on the employment probabilities of high‐skilled natives.