Open Access Open Access  Restricted Access Subscription or Fee Access

Explaining the labor market gaps between immigrants and natives in the OECD

Andreas Bergh

Abstract


In most OECD-countries immigrants have lower employment and higher unemployment than natives. The gap in labor market outcomes is larger in countries with more immigrant friendly attitudes. This paper suggests that in countries where labor market institutions are less competitive, native workers face less direct wage competition from immigration. As a result, the general population is more immigrant-friendly and income inequality is dampened. On the other hand, employment among immigrants suffers, thwarting the potential economic benefits from immigration. Empirical analysis of 19–28 OECD countries using Bayesian model averaging to cope with the model selection problem, provide support for the relevance of labor market institutions against other plausible explanations of immigrant labor market outcomes. In particular, the unemployment gap is bigger in countries where collective bargaining agreements cover a larger share of the labor market.


Keywords


Labor market segregation; immigration; inequality

Full Text:

PDF

References


Algan, Y., Dustmann, C., Glitz, A., and Manning, A. (2010). The Economic Situation of First and Second-Generation Immigrants in France, Germany and the United Kingdom*. The Economic Journal, 120, F4-F30.

Bernhard, W.T., and Leblang, D. (2016). Sovereign Debt, Migration Pressure, and Government Survival. Comparative Political Studies.

Borjas, G.J. (1995). The Economic Benefits from Immigration. The Journal of Economic Perspectives, 9, 3-22.

Borooah, V.K., and Mangan, J. (2007). Living here, born there: The economic life of Australia's immigrants. European Journal of Political Economy, 23, 486-511.

Bradley, D., Huber, E., Moller, S., Nielsen, F., and Stephens, J.D. (2003). Distribution and Redistribution in Postindustrial Democracies. World Politics, 55, 193-228.

Büchel, F., and Frick, J.R. (2005). Immigrants’ Economic Performance across Europe – Does Immigration Policy Matter? Population Research and Policy Review, 24, 175–212.

Cortes, P. (2008). The Effect of Low Skilled Immigration on U.S. Prices: Evidence from CPI Data. Journal of Political Economy, 116, 381-422.

Fleischmann, F., and Dronkers, J. (2010). Unemployment among immigrants in European labour markets: an analysis of origin and destination effects. Work, employment and society, 24, 337–354.

Kahn, L. M. 2000. "Wage Inequality, Collective Bargaining, and Relative Employment from 1985 to 1994: Evidence from Fifteen Oecd Countries." Review of Economics and Statistics 82:564-79.

Kogan, I. (2006). Labor Markets and Economic Incorporation among Recent Immigrants in Europe. Social Forces, 85, 697–721.

Koopmans, R. (2010). Trade-Offs between Equality and Difference: Immigrant Integration, Multiculturalism and the Welfare State in Cross-National Perspective. Journal of Ethnic and Migration Studies, 36, 1-26.

Lindbeck, A., and Snower, D.J. (1988). The Insider-Outsider theory of employment and unemployment. Cambridge, MA: MIT Press.

Nannestad, P. (2004). Immigration as a challenge to the Danish welfare state? European Journal of Political Economy, 20, 755-767.

Skedinger, P. (2010). Employment Protection Legislation - Evolution, Effects, Winners and Losers: Edward Elgar.

Storesletten, K. (2003). Fiscal Implications of Immigration - A Net Present Value Calculation. Scandinavian Journal of Economics, 105, 487-506.

Wright, M., and Bloemraad, I. (2012). Is There a Trade-off between Multiculturalism and Socio-Political Integration? Policy Regimes and Immigrant Incorporation in Comparative Perspective. Perspectives on Politics, 10, 77-95.


Refbacks

  • There are currently no refbacks.




Transnational Press London

Copyright © 2003-2016 Migration Letters / Transnational Press London | All rights reserved | Contact Us
TRANSNATIONAL PRESS LONDON LTD. IS A COMPANY REGISTERED IN ENGLAND AND WALES No. 8771684.