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Research ArticleArticle

The Effect of Immigration on Wages

Exploiting Exogenous Variation at the National Level

Joan Llull
Journal of Human Resources, July 2018, 53 (3) 608-662; DOI: https://doi.org/10.3368/jhr.53.3.0315-7032R2
Joan Llull
Joan Llull is assistant professor of economics at Universitat Autònoma de Barcelona, MOVE, and Barcelona GSE.
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Abstract

I estimate the effect of immigration on wages of native male workers correcting for endogenous allocation of immigrants across education–experience cells. Exogenous variation is obtained from interactions of push factors, distance, and skill-cell dummies: distance mitigates the effect of push factors more severely for some skill groups. I propose a two-stage approach (Subsample 2SLS) that estimates the first stage regression with an augmented sample of destination countries and the second stage with a restricted subsample of interest. Asymptotic properties are discussed. Results show important OLS biases. For the United States and Canada, Subsample 2SLS elasticities average around minus one, very stable across alternative specifications and different instruments.

JEL Classification
  • J61
  • J31
  • C26
  • Received March 2015.
  • Accepted February 2017.
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Journal of Human Resources: 53 (3)
Journal of Human Resources
Vol. 53, Issue 3
1 Jul 2018
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The Effect of Immigration on Wages
Joan Llull
Journal of Human Resources Jul 2018, 53 (3) 608-662; DOI: 10.3368/jhr.53.3.0315-7032R2

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The Effect of Immigration on Wages
Joan Llull
Journal of Human Resources Jul 2018, 53 (3) 608-662; DOI: 10.3368/jhr.53.3.0315-7032R2
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  • Article
    • Abstract
    • I. Introduction
    • II. Exogenous Variation at the National/Cross-Skill Level
    • III. Data
    • IV. Results at the National Level
    • V. Revisiting the Literature
    • VI. Conclusions
    • Acknowledgments
    • Appendix 1 Mathematical Derivations
    • Appendix 2 Variable Definitions and Sources
    • Appendix 3 Regional Distribution of Net Migration Flows after Selected Push Factors
    • Appendix 4 First Stage Coefficients of Baseline Regressions
    • Footnotes
    • References
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Keywords

  • J61
  • J31
  • C26
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