Immigrant versus Natives? Displacement and Job Creation

Özden, Çağlar; Wagner, Mathis

doi:10.1596/1813-9450-6900

Cited by 28 publications

(23 citation statements)

References 32 publications

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“…The finding that immigration increases the demand for native workers, even low‐skilled Malaysians as we show in the subsection Education , addresses the central question of an extensive body of literature on immigration: whether immigration harms or improves the labor market outcomes (wages and employment) of native workers. Özden and Wagner () point out that immigration affects the demand for native workers through two distinct two economic mechanisms: substitution and scale (output expansion) effects. An outward shift of the immigrant labor supply curve causes a reduction in immigrant wages.…”

Section: Resultsmentioning

confidence: 99%

“…Second, for a given relative wage, firms will employ more native workers as output expands (the scale effect). Using data from the Malaysian LFS, Özden and Wagner () provide estimates of both these effects. They find an elasticity of labor demand (the scale effect) of 3.4, which is significantly larger than the elasticity of substitution between immigrant and native labor of 2.5 .…”

Section: Resultsmentioning

confidence: 99%

“…Our instrumenting strategy is closely related to Özden and Wagner (). A valid instrument for immigration flows needs to be uncorrelated with any demand shocks, caused by changes in technology or output prices, which might affect the demand for native or immigrant labor in a given locality at a given time.…”

Section: Empirical Strategymentioning

confidence: 99%

See 2 more Smart Citations

Local Labor Supply Responses to Immigration

Carpio

Özden

Testaverde

et al. 2014

Scandinavian J Economics

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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.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

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Local Labor Supply Responses to Immigration

Carpio

Özden

Testaverde

et al. 2014

Scandinavian J Economics

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“…This specialization can boost competitiveness, and thus contribute to create further jobs for natives. In Malaysia, every 10 additional migrants in a given industry-region create four new jobs for natives (Ozden and Wagner 2014).…”

Section: Impact On Host Countriesmentioning

confidence: 99%

Migration and Remittances for Development in Asia

2018

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“…Cette augmentation de la rentabilité du secteur traditionnel augmente à son tour le salaire attendu des immigrants clandestins, favorisant ainsi l'immigration clandestine. Les résultats de notre analyse sont confirmés par les données de laFigure 2, qui montrent une corrélation négative entre surplus de la balance commerciale et immigration clandestine dans un échantillon de pays européens.4 Des études empiriques suggèrent que le degré de substituabilité entre immigrés et travailleurs autochtones diminue de manière significative si une proportion importante des immigrants est illégale(Özden et Wagner, 2014).3. Les dangers du protectionnisme... L'attrait de l'informalité…”

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