Central Data Catalog

Citation Information

Type Working Paper
Title Immigration, wages, and education: A labor market equilibrium structural model
Author(s)
Publication (Day/Month/Year) 2010
URL http://research.barcelonagse.eu/sites/default/files/working_paper_pdfs/711.pdf
Abstract
This paper analyzes the effect of immigration on wages taking into account
human capital and labor supply adjustments. Using U.S. microdata
for 1967-2007, I estimate a labor market equilibrium model that
includes endogenous decisions on education, participation, and occupation,
and allows for skill-biased technical change. Results suggest important
labor market adjustments that mitigate the effect of immigration on
wages. These adjustments include career switches, labor market detachment
and changes in schooling decisions, and are heterogeneous across
the workforce. The adjustments generate substantial self-selection biases
at the lower tail of the wage distribution that are corrected by the estimated
model.

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