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Title: Comment: Estimating the Effect of Immirgration on Wages

Citation Type: Journal Article

Publication Year: 2012

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Abstract: The effect that immigration has on labor markets in the receiving countries, andin particular on wages, is one of the most debated questions on immigration. Akey challenge in addressing this question empirically is to construct an appropriatecounterfactual situation: although wages of native workers are observed afterimmigration has taken place, it is not observed how wages would have evolved in theabsence of immigration. The central issue in the empirical literature is the constructionof a plausible estimate for this counterfactual situation.One approach is to slice the labor market into cells along some dimension, suchas regions or skill groups, and to use the variation induced by the differences inimmigration intensity across these cells to estimate the effect of immigration onwages.1 Of course, understanding how immigrants select into these cells is critical, andthe literature has addressed this by either focusing on situations in which the allocationto cells is plausibly random (see e.g. Card 1990; Glitz 2011), or by instrumentingimmigrant inflows...

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Authors: Preston, Ian; Dustmann, Christian

Periodical (Full): Journal of the European Economic Association

Issue: 1

Volume: 10

Pages: 216-223

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Migration and Immigration

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