The Role of Labor Market Institutions in the Impact of Immigration on Wages and Employment

Mette Foged, Linea Hasager, Vasil Yasenov

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Abstract

We collect 1,030 previously estimated wage effects and 432 employment effects of immigration,and we document that the mean and median effects on the relative wage are negative andsignificantly different from the small positive mean and median effects on the average wage. Thepattern is reversed for employment effects where the magnitudes are also smaller. Combining theeffect sizes with measures of labor market institutions, we find that institutions might shield nativeworkers from relative wage consequences but reduce the average wage effect of immigration. Wedo not detect a significant and robust association for the employment effects.
Original languageEnglish
JournalThe Scandinavian Journal of Economics
Volume124
Issue number1
Pages (from-to)164-213
ISSN0347-0520
DOIs
Publication statusPublished - Jan 2022

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