The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market
Year: 2003
Type: report
Abstract: Immigration is not evenly balanced across groups of workers that have the same education but differ in their work experience, and the nature of the supply imbalance changes over time.This paper develops a new approach for estimating the labor market impact of immigration by exploiting this variation in supply shifts across education-experience groups.I assume that similarly educated workers with different levels of experience participate in a national labor market and are not perfect substitutes.The analysis indicates that immigration lowers the wage of competing workers: a 10 percent increase in supply reduces wages by 3 to 4 percent.
DOI: 10.3386/w9755
Author: George Borjas
Institution: Harvard University
Language: English
Topic: Migration and Labor Dynamics
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3124074988