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How Immigration Impacts the Destination Economy: The Evidence

  • Örn B. Bodvarsson
  • Hendrik Van den Berg
Chapter

Abstract

This chapter supplements the previous chapter by examining the available evidence on how immigration impacts the destination country’s labor markets. In this chapter, we discuss studies that use one of the three popular statistical modeling approaches to estimating the labor market effects of immigration: the spatial correlation method, the production function method, or the skill cell method. The spatial correlation method exploits geographic variation in immigrant concentrations and yields estimates from regressions of labor market outcomes on those concentrations. The production function method produces estimates of immigration’s impact through the identification of factor price elasticities. The skill cell method partitions the national labor market into measured skill categories and estimates the impact of exogenous immigration to those categories. Studies applying the production function and spatial correlation methods show that immigration has little or no impact on native-born wages or employment, while the skill cell method suggests more substantial impacts, at least in the short run.

Keywords

Labor Market Destination Country Labor Market Outcome High School Degree Native Worker 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer New York 2013

Authors and Affiliations

  • Örn B. Bodvarsson
    • 1
  • Hendrik Van den Berg
    • 2
  1. 1.Department EconomicsSt. Cloud State UniversitySt. CloudUSA
  2. 2.Department EconomicsUniversity of NebraskaLincolnUSA

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