Labor Supply Shocks, Native Wages, and the Adjustment of Local Employment

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Show simple item record Dustmann, Christian Schönberg, Uta Stuhler, Jan 2017-09-12T16:23:13Z 2019-02-01T23:00:06Z 2017-02-01
dc.identifier.bibliographicCitation Dustmann, C., Schönberg, U.,Stuhler, J. (2017). Labor supply shocks, native wages, and the adjustment of local employment. The Quarterly Journal of Economics, v. 132, n. 1, pp. 435–483.
dc.identifier.issn 0033-5533
dc.description.abstract By exploiting a commuting policy that led to a sharp and unexpected inflow of Czech workers to areas along the German-Czech border, we examine the impact of an exogenous immigration-induced labor supply shock on local wages and employment of natives. On average, the supply shock leads to a moderate decline in local native wages and a sharp decline in local native employment. These average effects mask considerable heterogeneity across groups: while younger natives experience larger wage effects, employment responses are particularly pronounced for older natives. This pattern is inconsistent with standard models of immigration but can be accounted for by a model that allows for a larger labor supply elasticity or a higher degree of wage rigidity for older than for young workers. We further show that the employment response is almost entirely driven by diminished inflows of natives into work rather than outflows into other areas or nonemployment, suggesting that "outsiders" shield "insiders" from the increased competition.
dc.description.sponsorship Christian Dustmann acknowledges funding through the ERC Advanced Grant 323992-DMEA and by the DFG (DU1024/1-1). Jan Stuhler acknowledges funding from the German National Academic Foundation, the Spanish Ministry of Economy and Competitiveness (MDM2014-0431 and ECO2014-55858-P), and the Comunidad de Madrid (MadEco-CM S2015/HUM-3444).
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Oxford University Press
dc.rights © Oxford University Press
dc.subject.other Immigration
dc.subject.other Wage effects
dc.subject.other Labor supply elasticity
dc.subject.other Internal migration
dc.title Labor Supply Shocks, Native Wages, and the Adjustment of Local Employment
dc.type article
dc.subject.jel J21
dc.subject.jel J22
dc.subject.jel J61
dc.subject.jel R23
dc.subject.eciencia Economía
dc.identifier.doi 10.1093/qje/qjw032
dc.rights.accessRights openAccess
dc.relation.projectID Gobierno de España. ECO2014-55858-P
dc.relation.projectID Gobierno de España. MDM 2014-0431
dc.relation.projectID Comunidad de Madrid. S2015/HUM-3444/MADECO-CM
dc.type.version acceptedVersion
dc.identifier.publicationissue 1
dc.identifier.publicationtitle The Quarterly journal of economics
dc.identifier.publicationvolume 132
dc.identifier.uxxi AR/0000019166
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