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Local Labor Supply Responses to Immigration
Author(s) -
Del Carpio Ximena,
Özden Çağlar,
Testaverde Mauro,
Wagner Mathis
Publication year - 2015
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/sjoe.12099
Subject(s) - immigration , instrumental variable , economics , demographic economics , native born , labour economics , state (computer science) , internal migration , developing country , geography , economic growth , econometrics , archaeology , algorithm , computer science
Abstract How natives adjust is central to an understanding of the impact of immigration in destination countries. Using detailed labor force data for Malaysia for 1990–2010, we provide estimates of native responses to immigration on multiple extensive margins and rare evidence for a developing country. Instrumental variable estimates show that increased immigration to a state causes substantial internal inward migration, consistent with the fact that immigration increases the demand for native workers. Relocating Malaysian workers are accompanied by their spouses (three‐quarters of whom are housewives) and children who attend school. We find that these effects are concentrated among middle‐ and lower‐skilled Malaysians.