Immigrant versus Natives? Displacement and Job Creation

dc.creatorWagner, Mathis
dc.creatorOzden, Caglar
dc.date2014-06-26T20:49:33Z
dc.date2014-06-26T20:49:33Z
dc.date2014-06
dc.date.accessioned2026-07-01T00:53:09Z
dc.descriptionThe impact of immigration on native workers is driven by two countervailing forces: the degree of substitutability between natives and immigrants, and the increased demand for native workers as immigrants reduce the cost of production and output expands. The literature so far has focused on the former substitution effect, while ignoring the latter scale effect. This paper estimates both of these effects using labor force survey data from Malaysia (1990-2010), a country uniquely suited for understanding the impact of low-skilled immigration. The instrumental variable estimates imply that the elasticity of labor demand (3.4) is greater than the elasticity of substitution between natives and immigrants (2.5). On average the scale effect outweighs the substitution effect. For every ten additional immigrants, employment of native workers increases by 4.1 in a local labor market. These large reallocation effects are accompanied by negligible relative wage changes. At the national level, a 10 percent increase in immigrants, equivalent to 1 percent increase in labor force, has a small positive effect on native wages (0.14 percent). The impact of immigration is highly heterogeneous for natives with different levels of education, resulting in substantial changes in skill premiums and hence inequality. Immigrants on net displace natives with at most primary education; while primarily benefiting those with a little more education, lower secondary or completed secondary education.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2014/06/19604274/immigrant-versus-natives-displacement-job-creation
dc.identifierhttps://hdl.handle.net/10986/18788
dc.identifierhttps://doi.org/10.1596/1813-9450-6900
dc.identifier.urihttp://hdl.handle.net/123456789/412454
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 6900
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAGE CATEGORIES
dc.subjectAGE GROUP
dc.subjectAGE GROUPS
dc.subjectAGRICULTURE
dc.subjectAVERAGE WAGE
dc.subjectAVERAGE WAGES
dc.subjectCITIZENS
dc.subjectCITIZENSHIP
dc.subjectCOBB-DOUGLAS PRODUCTION FUNCTION
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONSUMERS
dc.subjectCOUNTRY OF ORIGIN
dc.subjectDECLINING INDUSTRIES
dc.subjectDEMAND CURVE
dc.subjectDEMAND ELASTICITY
dc.subjectDEMOGRAPHIC CHANGES
dc.subjectDEMOGRAPHIC TRANSITION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISPLACEMENT
dc.subjectECONOMIC GROWTH
dc.subjectEDUCATIONAL ATTAINMENT
dc.subjectELASTICITY
dc.subjectELASTICITY OF DEMAND
dc.subjectELASTICITY OF LABOR SUPPLY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectELASTICITY OF SUPPLY
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT LEVELS
dc.subjectEMPLOYMENT STATUS
dc.subjectEQUATIONS
dc.subjectEXCLUSION RESTRICTION
dc.subjectEXPORTS
dc.subjectFACTOR PRICES
dc.subjectFOREIGN WORKERS
dc.subjectFORMAL EDUCATION
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGENERAL EQUILIBRIUM
dc.subjectHIGH SCHOOL EDUCATION
dc.subjectHUMAN CAPITAL
dc.subjectHUMAN RESOURCES
dc.subjectIMMIGRANT
dc.subjectIMMIGRANTS
dc.subjectIMMIGRATION
dc.subjectIMMIGRATION LEVELS
dc.subjectIMMIGRATION POLICIES
dc.subjectIMMIGRATION POLICY
dc.subjectIMMIGRATION SYSTEM
dc.subjectIMPERFECT SUBSTITUTES
dc.subjectINCOME
dc.subjectINNOVATION
dc.subjectINTERNAL MIGRATION
dc.subjectINTERNATIONAL CONFERENCE ON MIGRATION
dc.subjectINTERNATIONAL MIGRATION
dc.subjectINTERNATIONAL MIGRATION REVIEW
dc.subjectJOB CREATION
dc.subjectJOBS
dc.subjectLABOR COSTS
dc.subjectLABOR DEMAND
dc.subjectLABOR ECONOMICS
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET IMPACT
dc.subjectLABOR MARKET INFORMATION
dc.subjectLABOR MARKET OUTCOMES
dc.subjectLABOR MOBILITY
dc.subjectLABOR MOVEMENTS
dc.subjectLABOR SHARE
dc.subjectLABOR SUPPLIES
dc.subjectLABOR SUPPLY
dc.subjectLABOUR
dc.subjectLABOUR FORCE
dc.subjectLEGAL IMMIGRATION
dc.subjectLEVEL OF EDUCATION
dc.subjectLEVELS OF EDUCATION
dc.subjectLOCAL LABOR MARKET
dc.subjectLOCAL LABOR MARKETS
dc.subjectMARGINAL PRODUCT
dc.subjectMARITAL STATUS
dc.subjectMINIMUM WAGE
dc.subjectNATIONAL GOVERNMENTS
dc.subjectNATIONAL LEVEL
dc.subjectNATIONAL LEVELS
dc.subjectNATIVE WORKERS
dc.subjectOCCUPATION
dc.subjectOCCUPATIONS
dc.subjectPERMANENT RESIDENCE
dc.subjectPOLICY BRIEF
dc.subjectPOLICY DISCUSSIONS
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY RESEARCH WORKING PAPER
dc.subjectPOLITICAL ECONOMY
dc.subjectPOTENTIAL MIGRANTS
dc.subjectPRIMARY EDUCATION
dc.subjectPRIMARY SCHOOL
dc.subjectPRIMARY SCHOOL EDUCATION
dc.subjectPRODUCT QUALITY
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTIVITY
dc.subjectPROGRESS
dc.subjectREAL WAGES
dc.subjectRESPECT
dc.subjectRETIREMENT
dc.subjectSCALE EFFECT
dc.subjectSECONDARY EDUCATION
dc.subjectSECONDARY SCHOOL
dc.subjectSECONDARY SCHOOL EDUCATION
dc.subjectSERVICE INDUSTRIES
dc.subjectSERVICE SECTORS
dc.subjectSKILL GROUP
dc.subjectSKILL GROUPS
dc.subjectSKILL PREMIUM
dc.subjectSKILL PREMIUMS
dc.subjectSKILLED LABOR
dc.subjectSKILLED WORKERS
dc.subjectSPILLOVER
dc.subjectSPOUSE
dc.subjectSUBSTITUTE
dc.subjectSUBSTITUTION EFFECT
dc.subjectSUPPLY CURVE
dc.subjectSUPPLY ELASTICITY
dc.subjectTEMPORARY WORK
dc.subjectTOTAL EMPLOYMENT
dc.subjectTOTAL WAGE
dc.subjectTRANSPORTATION
dc.subjectUNEMPLOYED
dc.subjectUNITED NATIONS POPULATION DIVISION
dc.subjectVOCATIONAL TRAINING
dc.subjectWAGE BILL
dc.subjectWAGE DATA
dc.subjectWAGE DISTRIBUTION
dc.subjectWAGE EFFECTS
dc.subjectWAGE GAINS
dc.subjectWAGE IMPACT
dc.subjectWAGE INCREASES
dc.subjectWAGE LEVELS
dc.subjectWAR
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectWORKFORCE
dc.subjectWORKING POPULATION
dc.titleImmigrant versus Natives? Displacement and Job Creation

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