The Wage Effects of Immigration and Emigration

Immigrants in Rome or Paris are more visible to the public eye than the Italian or French engineers in Silicon Valley, especially when it comes to the debate on the effects of immigration on the employment and wages of natives in high-income countr...

Full description

Bibliographic Details
Main Authors: Docquier, Frederic, Ozden, Caglar, Peri, Giovanni
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110201112949
http://hdl.handle.net/10986/3326
id okr-10986-3326
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGGREGATE INCOME
AVERAGE EDUCATION LEVEL
AVERAGE WAGE
AVERAGE WAGES
BRAIN DRAIN
BRAIN DRAIN MIGRATION
BRAIN GAIN
BRAIN WASTE
BUSINESS CYCLE
CAPITAL-LABOR RATIO
CENSUS DATA
CENSUSES
CITIZENS
CITIZENSHIP
CLOSED ECONOMIES
CLOSED ECONOMY
COBB-DOUGLAS PRODUCTION FUNCTION
COLLEGE GRADUATE
COLLEGE GRADUATES
COMPENSATION
COUNTRIES OF EMIGRATION
COUNTRY OF ORIGIN
CROSS-SECTIONAL DATA
DATA ON IMMIGRATION
DEMAND FOR LABOR
DEVELOPING COUNTRIES
DEVELOPMENT POLICY
DOMESTIC LABOR
DOMESTIC LABOR MARKET
ECONOMIC GROWTH
EDUCATED MIGRANTS
EDUCATIONAL ATTAINMENT
EDUCATIONAL LEVEL
EDUCATIONAL STATUS
EFFECTS OF MIGRATION
EMIGRANTS
EMIGRATION
EMIGRATION LEVELS
EMIGRATION RATE
EMPIRICAL ANALYSIS
EMPLOYMENT RATE
EMPLOYMENT RATES
EUROPEAN LABOR
EXPATRIATES
FOREIGN WORKERS
FOREIGNERS
FORMAL EDUCATION
GROSS EMIGRATION
GROSS IMMIGRATION
HIGH UNEMPLOYMENT
HIGHLY SKILLED WORKERS
HOME COUNTRIES
HOST COUNTRIES
HOST COUNTRY
HUMAN CAPITAL
ILLEGAL IMMIGRATION
IMMIGRANT
IMMIGRANT FROM COUNTRY
IMMIGRANT POPULATION
IMMIGRANTS
IMMIGRATION
IMMIGRATION LEVELS
IMPACT OF IMMIGRATION
INCOME DISTRIBUTION
INTERNATIONAL MIGRANTS
INTERNATIONAL MIGRATION
INTERNATIONAL MIGRATIONS
INTERNATIONAL MOBILITY
JOB CREATION
JOBS
LABOR DEMAND
LABOR DEMAND CURVE
LABOR FORCE
LABOR FORCES
LABOR MARKET
LABOR MARKET IMPACT
LABOR MARKET PERFORMANCE
LABOR MARKETS
LABOR MOVEMENTS
LABOR RATIO
LABOR SUPPLIES
LABOR SUPPLY
LABOR-MARKET
LABOUR
LABOUR MARKET
LABOUR MARKET INSTITUTIONS
LEGAL STATUS
LONG-RUN EFFECT
LOW EMPLOYMENT
MIGRANT
MIGRANT LABOR
MIGRANT LABOR FORCE
MIGRANT POPULATIONS
MIGRANT STOCK
MIGRATION DATA
MIGRATION FLOWS
MIGRATION PATTERNS
MIGRATION STATISTICS
MIGRATIONS
NATIONAL LEVEL
NATIONALS
NATIVE WORKERS
NATURALIZATION
NET IMMIGRATION
NET MIGRATION
OCCUPATIONS
POLICY DISCUSSIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POPULATION AND DEVELOPMENT
POPULATION DATA
PRODUCTION FUNCTION
PRODUCTIVITY GAIN
PRODUCTIVITY LEVEL
PROGRESS
PUBLIC ATTENTION
QUALITY OF EDUCATION
RESPECT
RETURN MIGRATION
RETURNEES
RICHER COUNTRIES
SECONDARY EDUCATION
SKILL COMPOSITION
SKILL COMPOSITION OF MIGRANTS
SKILL GROUP
SKILL GROUPS
SKILL LEVEL
SKILL LEVELS
SKILL PREMIUM
SKILL STRUCTURE
SKILLED MIGRANTS
SKILLED OCCUPATIONS
SKILLED WORKERS
SOCIAL PROTECTION
TERTIARY EDUCATION
TOTAL EMPLOYMENT
TOTAL FACTOR PRODUCTIVITY
UNDOCUMENTED IMMIGRANTS
UNDOCUMENTED MIGRANTS
UNDOCUMENTED MIGRATION
UNDOCUMENTED WORKERS
UNEMPLOYMENT
UNEMPLOYMENT LEVELS
UNSKILLED JOBS
VISAS
WAGE DISTRIBUTION
WAGE EFFECT
WAGE EFFECTS
WAGE GAINS
WAGE GAP
WAGE IMPACT
WAGE INCREASE
WAGE INEQUALITY
WAGE LEVEL
WAGE LOSSES
WAGE RATES
WORKFORCE
WORKING-AGE POPULATION
spellingShingle AGGREGATE INCOME
AVERAGE EDUCATION LEVEL
AVERAGE WAGE
AVERAGE WAGES
BRAIN DRAIN
BRAIN DRAIN MIGRATION
BRAIN GAIN
BRAIN WASTE
BUSINESS CYCLE
CAPITAL-LABOR RATIO
CENSUS DATA
CENSUSES
CITIZENS
CITIZENSHIP
CLOSED ECONOMIES
CLOSED ECONOMY
COBB-DOUGLAS PRODUCTION FUNCTION
COLLEGE GRADUATE
COLLEGE GRADUATES
COMPENSATION
COUNTRIES OF EMIGRATION
COUNTRY OF ORIGIN
CROSS-SECTIONAL DATA
DATA ON IMMIGRATION
DEMAND FOR LABOR
DEVELOPING COUNTRIES
DEVELOPMENT POLICY
DOMESTIC LABOR
DOMESTIC LABOR MARKET
ECONOMIC GROWTH
EDUCATED MIGRANTS
EDUCATIONAL ATTAINMENT
EDUCATIONAL LEVEL
EDUCATIONAL STATUS
EFFECTS OF MIGRATION
EMIGRANTS
EMIGRATION
EMIGRATION LEVELS
EMIGRATION RATE
EMPIRICAL ANALYSIS
EMPLOYMENT RATE
EMPLOYMENT RATES
EUROPEAN LABOR
EXPATRIATES
FOREIGN WORKERS
FOREIGNERS
FORMAL EDUCATION
GROSS EMIGRATION
GROSS IMMIGRATION
HIGH UNEMPLOYMENT
HIGHLY SKILLED WORKERS
HOME COUNTRIES
HOST COUNTRIES
HOST COUNTRY
HUMAN CAPITAL
ILLEGAL IMMIGRATION
IMMIGRANT
IMMIGRANT FROM COUNTRY
IMMIGRANT POPULATION
IMMIGRANTS
IMMIGRATION
IMMIGRATION LEVELS
IMPACT OF IMMIGRATION
INCOME DISTRIBUTION
INTERNATIONAL MIGRANTS
INTERNATIONAL MIGRATION
INTERNATIONAL MIGRATIONS
INTERNATIONAL MOBILITY
JOB CREATION
JOBS
LABOR DEMAND
LABOR DEMAND CURVE
LABOR FORCE
LABOR FORCES
LABOR MARKET
LABOR MARKET IMPACT
LABOR MARKET PERFORMANCE
LABOR MARKETS
LABOR MOVEMENTS
LABOR RATIO
LABOR SUPPLIES
LABOR SUPPLY
LABOR-MARKET
LABOUR
LABOUR MARKET
LABOUR MARKET INSTITUTIONS
LEGAL STATUS
LONG-RUN EFFECT
LOW EMPLOYMENT
MIGRANT
MIGRANT LABOR
MIGRANT LABOR FORCE
MIGRANT POPULATIONS
MIGRANT STOCK
MIGRATION DATA
MIGRATION FLOWS
MIGRATION PATTERNS
MIGRATION STATISTICS
MIGRATIONS
NATIONAL LEVEL
NATIONALS
NATIVE WORKERS
NATURALIZATION
NET IMMIGRATION
NET MIGRATION
OCCUPATIONS
POLICY DISCUSSIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POPULATION AND DEVELOPMENT
POPULATION DATA
PRODUCTION FUNCTION
PRODUCTIVITY GAIN
PRODUCTIVITY LEVEL
PROGRESS
PUBLIC ATTENTION
QUALITY OF EDUCATION
RESPECT
RETURN MIGRATION
RETURNEES
RICHER COUNTRIES
SECONDARY EDUCATION
SKILL COMPOSITION
SKILL COMPOSITION OF MIGRANTS
SKILL GROUP
SKILL GROUPS
SKILL LEVEL
SKILL LEVELS
SKILL PREMIUM
SKILL STRUCTURE
SKILLED MIGRANTS
SKILLED OCCUPATIONS
SKILLED WORKERS
SOCIAL PROTECTION
TERTIARY EDUCATION
TOTAL EMPLOYMENT
TOTAL FACTOR PRODUCTIVITY
UNDOCUMENTED IMMIGRANTS
UNDOCUMENTED MIGRANTS
UNDOCUMENTED MIGRATION
UNDOCUMENTED WORKERS
UNEMPLOYMENT
UNEMPLOYMENT LEVELS
UNSKILLED JOBS
VISAS
WAGE DISTRIBUTION
WAGE EFFECT
WAGE EFFECTS
WAGE GAINS
WAGE GAP
WAGE IMPACT
WAGE INCREASE
WAGE INEQUALITY
WAGE LEVEL
WAGE LOSSES
WAGE RATES
WORKFORCE
WORKING-AGE POPULATION
Docquier, Frederic
Ozden, Caglar
Peri, Giovanni
The Wage Effects of Immigration and Emigration
geographic_facet The World Region
The World Region
relation Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5556
description Immigrants in Rome or Paris are more visible to the public eye than the Italian or French engineers in Silicon Valley, especially when it comes to the debate on the effects of immigration on the employment and wages of natives in high-income countries. This paper argues that such public fears, especially in European countries are misplaced; instead, more concern should be directed towards emigration. Using a new dataset on migration flows by education levels for the period 1990-2000, the results show the following: First, immigration had zero to small positive long-run effect on the average wages of natives, ranging from zero in Italy to +1.7 percent in Australia. Second, emigration had a mild to significant negative long-run effect ranging from zero for the US to -0.8 percent in the UK. Third, over the period 1990-2000, immigration generally improved the income distribution of European countries while emigration worsened it by increasing the wage gap between the high and low skilled natives. These patterns hold true using a range of parameters for the simulations, accounting for the estimates of undocumented immigrants, and correcting for the quality of schooling and/or labor-market downgrading of skills. All results go counter to the popular beliefs about migration, but they are due to the higher skill intensity of both emigration and immigration relative to non-migrants.
format Publications & Research :: Policy Research Working Paper
author Docquier, Frederic
Ozden, Caglar
Peri, Giovanni
author_facet Docquier, Frederic
Ozden, Caglar
Peri, Giovanni
author_sort Docquier, Frederic
title The Wage Effects of Immigration and Emigration
title_short The Wage Effects of Immigration and Emigration
title_full The Wage Effects of Immigration and Emigration
title_fullStr The Wage Effects of Immigration and Emigration
title_full_unstemmed The Wage Effects of Immigration and Emigration
title_sort wage effects of immigration and emigration
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110201112949
http://hdl.handle.net/10986/3326
_version_ 1764386799560425472
spelling okr-10986-33262021-04-23T14:02:08Z The Wage Effects of Immigration and Emigration Docquier, Frederic Ozden, Caglar Peri, Giovanni AGGREGATE INCOME AVERAGE EDUCATION LEVEL AVERAGE WAGE AVERAGE WAGES BRAIN DRAIN BRAIN DRAIN MIGRATION BRAIN GAIN BRAIN WASTE BUSINESS CYCLE CAPITAL-LABOR RATIO CENSUS DATA CENSUSES CITIZENS CITIZENSHIP CLOSED ECONOMIES CLOSED ECONOMY COBB-DOUGLAS PRODUCTION FUNCTION COLLEGE GRADUATE COLLEGE GRADUATES COMPENSATION COUNTRIES OF EMIGRATION COUNTRY OF ORIGIN CROSS-SECTIONAL DATA DATA ON IMMIGRATION DEMAND FOR LABOR DEVELOPING COUNTRIES DEVELOPMENT POLICY DOMESTIC LABOR DOMESTIC LABOR MARKET ECONOMIC GROWTH EDUCATED MIGRANTS EDUCATIONAL ATTAINMENT EDUCATIONAL LEVEL EDUCATIONAL STATUS EFFECTS OF MIGRATION EMIGRANTS EMIGRATION EMIGRATION LEVELS EMIGRATION RATE EMPIRICAL ANALYSIS EMPLOYMENT RATE EMPLOYMENT RATES EUROPEAN LABOR EXPATRIATES FOREIGN WORKERS FOREIGNERS FORMAL EDUCATION GROSS EMIGRATION GROSS IMMIGRATION HIGH UNEMPLOYMENT HIGHLY SKILLED WORKERS HOME COUNTRIES HOST COUNTRIES HOST COUNTRY HUMAN CAPITAL ILLEGAL IMMIGRATION IMMIGRANT IMMIGRANT FROM COUNTRY IMMIGRANT POPULATION IMMIGRANTS IMMIGRATION IMMIGRATION LEVELS IMPACT OF IMMIGRATION INCOME DISTRIBUTION INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INTERNATIONAL MIGRATIONS INTERNATIONAL MOBILITY JOB CREATION JOBS LABOR DEMAND LABOR DEMAND CURVE LABOR FORCE LABOR FORCES LABOR MARKET LABOR MARKET IMPACT LABOR MARKET PERFORMANCE LABOR MARKETS LABOR MOVEMENTS LABOR RATIO LABOR SUPPLIES LABOR SUPPLY LABOR-MARKET LABOUR LABOUR MARKET LABOUR MARKET INSTITUTIONS LEGAL STATUS LONG-RUN EFFECT LOW EMPLOYMENT MIGRANT MIGRANT LABOR MIGRANT LABOR FORCE MIGRANT POPULATIONS MIGRANT STOCK MIGRATION DATA MIGRATION FLOWS MIGRATION PATTERNS MIGRATION STATISTICS MIGRATIONS NATIONAL LEVEL NATIONALS NATIVE WORKERS NATURALIZATION NET IMMIGRATION NET MIGRATION OCCUPATIONS POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POPULATION AND DEVELOPMENT POPULATION DATA PRODUCTION FUNCTION PRODUCTIVITY GAIN PRODUCTIVITY LEVEL PROGRESS PUBLIC ATTENTION QUALITY OF EDUCATION RESPECT RETURN MIGRATION RETURNEES RICHER COUNTRIES SECONDARY EDUCATION SKILL COMPOSITION SKILL COMPOSITION OF MIGRANTS SKILL GROUP SKILL GROUPS SKILL LEVEL SKILL LEVELS SKILL PREMIUM SKILL STRUCTURE SKILLED MIGRANTS SKILLED OCCUPATIONS SKILLED WORKERS SOCIAL PROTECTION TERTIARY EDUCATION TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNDOCUMENTED IMMIGRANTS UNDOCUMENTED MIGRANTS UNDOCUMENTED MIGRATION UNDOCUMENTED WORKERS UNEMPLOYMENT UNEMPLOYMENT LEVELS UNSKILLED JOBS VISAS WAGE DISTRIBUTION WAGE EFFECT WAGE EFFECTS WAGE GAINS WAGE GAP WAGE IMPACT WAGE INCREASE WAGE INEQUALITY WAGE LEVEL WAGE LOSSES WAGE RATES WORKFORCE WORKING-AGE POPULATION Immigrants in Rome or Paris are more visible to the public eye than the Italian or French engineers in Silicon Valley, especially when it comes to the debate on the effects of immigration on the employment and wages of natives in high-income countries. This paper argues that such public fears, especially in European countries are misplaced; instead, more concern should be directed towards emigration. Using a new dataset on migration flows by education levels for the period 1990-2000, the results show the following: First, immigration had zero to small positive long-run effect on the average wages of natives, ranging from zero in Italy to +1.7 percent in Australia. Second, emigration had a mild to significant negative long-run effect ranging from zero for the US to -0.8 percent in the UK. Third, over the period 1990-2000, immigration generally improved the income distribution of European countries while emigration worsened it by increasing the wage gap between the high and low skilled natives. These patterns hold true using a range of parameters for the simulations, accounting for the estimates of undocumented immigrants, and correcting for the quality of schooling and/or labor-market downgrading of skills. All results go counter to the popular beliefs about migration, but they are due to the higher skill intensity of both emigration and immigration relative to non-migrants. 2012-03-19T18:00:23Z 2012-03-19T18:00:23Z 2011-02-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110201112949 http://hdl.handle.net/10986/3326 English Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5556 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region