Conference Paper European Regional Science Association Conference
The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis
27 Aug 2005
Immigration is a phenomenon of growing significance in many countries. Although political pressure to limit an influx of foreign born persons is usually defended in terms of a limited absorption capacity in the host country in terms of social cohesion and other social outcomes, there is also a common perception of resulting economic costs, particularly with respect to wages and employment opportunities. Using meta-analytic techniques we found in earlier research that the downward effect of immigration on wages of native workers is very small at the aggregate level although somewhat larger effects can be found for natives and earlier immigrants who are close substitutes to new arrivals. In this paper we focus on employment outcomes and assess by means of a meta-analysis of a range of studies for various countries whether immigration leads to job displacement among native workers. Consistent with the results for wages, we find that there is little evidence of job displacement at the aggregate level. Again at a more disaggregate levels, effects may be greater. The results are also linked to several study features.