The Labor Demand Curve Is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market
- Resource Type
- research-article
- Authors
- Borjas, George J.
- Source
- The Quarterly Journal of Economics, 2003 Nov 01. 118(4), 1335-1374.
- Subject
- Labor markets
Wages
Coefficients
School dropouts
College graduates
Workforce
Linear regression
Educational attainment
Education
Supply shocks
- Language
- English
- ISSN
- 00335533
15314650
Immigration is not evenly balanced across groups of workers who have the same education but differ in their work experience, and the nature of the supply imbalance changes over time. This paper develops a new approach for estimating the labor market impact of immigration by exploiting this variation in supply shifts across education-experience groups. I assume that similarly educated workers with different levels of experience participate in a national labor market and are not perfect substitutes. The analysis indicates that immigration lowers the wage of competing workers: a 10 percent increase in supply reduces wages by 3 to 4 percent.