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

Bergh, Andreas LU (2017) In Migration Letters 14(2).
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... (More)
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. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
labor market segregation, immigration, inequality
in
Migration Letters
volume
14
issue
2
publisher
London: European Business School, Regent's College
external identifiers
  • scopus:85018986821
ISSN
1741-8984
language
English
LU publication?
yes
id
024a3cf7-51a0-4e0b-8b70-e07958341a1c
alternative location
http://www.tplondon.com/journal/index.php/ml/article/view/745
date added to LUP
2016-11-14 14:10:08
date last changed
2018-01-07 11:35:09
@article{024a3cf7-51a0-4e0b-8b70-e07958341a1c,
  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.},
  articleno    = {745},
  author       = {Bergh, Andreas},
  issn         = {1741-8984},
  keyword      = {labor market segregation,immigration,inequality},
  language     = {eng},
  number       = {2},
  publisher    = {London: European Business School, Regent's College},
  series       = {Migration Letters},
  title        = {Explaining the labor market gaps between immigrants and natives in the OECD},
  volume       = {14},
  year         = {2017},
}