Protective or counter-productive? labour market institutions and the effect of immigration on EU natives

Bibliographic Data

ID9718362
AuthorsJoshua D Angrist (0000-0001-6992-8956, MIT and NBER), Adriana Kugler (0000-0003-0022-4429, Universitat Pompeu Fabra), Adriana D Kugler (Universitat Pompeu Fabra and CEPR)
Year2003
Volume113
Issue488
PagesF302-F331
Publication date2003-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/1468-0297.00136
OpenAlexW2108881402
LanguageEN
Citations received83
References cited32

Reduced labour market flexibility may protect some native workers from immigrant competition but can increase negative effects on equilibrium employment. This motivates an analysis of immigration effects interacted with institutions. OLS estimates for European countries show small, mostly negative immigration effects while an IV strategy based on immigrants from former Yugoslavia generates larger though mostly insignificant negative estimates. Specifications allowing interactions between immigration and measures of labour and product market rigidity are consistent with the view that reduced flexibility increases negative immigration effects. The estimates typically imply more native job losses in countries with restrictive institutions, especially restricted product markets

Competition (biology · Demographic economics · Economics · Employment protection legislation · Flexibility (engineering · Immigration · Immigration policy · Incentive · Labour economics · Labour market flexibility · Macroeconomics · Market competition · Market economy · Political science · Product market · Unemployment · Global trade and economics · Labor market dynamics and wage inequality · Migration and Labor Dynamics

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