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Title: Redefining skill supply to improve structural modelling of immigration and wage inequality

Citation Type: Miscellaneous

Publication Year: 2014

ISBN: 4670396773

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Abstract: The recent structural approach to evaluating the impact of immigration on US wage inequality has mainly concluded that this impact has only been small. Yet the usefulness of this conclusion has been questioned mainly due to the low robustness of the empirical estimates of structural parameters. This article proposes a modification to the structural framework, where the arguments of the national production function are the workers' skills instead of the workers themselves. This modification both implies important theoretical advantages and allows robust estimation of the structural parameters. Applied in simulations, this modified framework confirms the conclusion that recent US immigration has only had a minor impact on native wage inequality.

Url: https://www.economics.gu.se/digitalAssets/1491/1491633_ruist-immigration-wage-inequality.pdf

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Authors: Ruist, Joakim

Publisher: University of Gothenburg

Data Collections: IPUMS CPS

Topics: Migration and Immigration

Countries: Sweden