Dec 10, 2013

Immigration and wages

I did not find a draft of this paper, which looks at the effect of immigration on wages of unskilled labor using a natural experiment. The abstract
This study exploits the natural experiment, provided by the start of the second intifada, to measure the effect of immigration on the wage and employment of unskilled native workers. It finds that immigration has no effect on the wage or employment of unskilled Jewish workers. The wage and employment of the least-skilled Israeli Arab workers (with zero to five years of schooling) are adversely affected by immigration. The slightly more skilled Arab workers (with six to 11 years of schooling), in contrast, are positively affected by immigration, suggesting a complementarity effect with this group. Different explanations are proposed.
The abstract is taken from the current number of the Southern Economic Journal, which has other interesting articles.  

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