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Do Immigrants Take or Create Residents’ Jobs? Evidence from Free Movement of Workers in Switzerland


Basten, Christoph; Siegenthaler, Michael (2019). Do Immigrants Take or Create Residents’ Jobs? Evidence from Free Movement of Workers in Switzerland. Scandinavian Journal of Economics, 121(3):994-1019.

Abstract

In 2002, Switzerland began to adopt free movement of workers with the European Union. We study the effects of the resulting immigration wave on resident workers. We focus on the level of national skill groups and propose an Instrumental Variable approach to address the endogeneity of immigration in this setting. Mostly relying on administrative data on the 2002–2011 period, we find that immigration of foreign workers reduced unemployment of residents and had limited adverse effects on their wages and employment. One reason is that younger residents changed to more demanding jobs as a response to the arrival of immigrants.

Abstract

In 2002, Switzerland began to adopt free movement of workers with the European Union. We study the effects of the resulting immigration wave on resident workers. We focus on the level of national skill groups and propose an Instrumental Variable approach to address the endogeneity of immigration in this setting. Mostly relying on administrative data on the 2002–2011 period, we find that immigration of foreign workers reduced unemployment of residents and had limited adverse effects on their wages and employment. One reason is that younger residents changed to more demanding jobs as a response to the arrival of immigrants.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Banking and Finance
Dewey Decimal Classification:330 Economics
Language:English
Date:1 July 2019
Deposited On:26 Oct 2018 07:00
Last Modified:05 Jul 2019 09:20
Publisher:Wiley-Blackwell Publishing, Inc.
ISSN:0347-0520
OA Status:Green
Publisher DOI:https://doi.org/10.1111/sjoe.12293
Other Identification Number:merlin-id:16853

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