Distributional effects of immigration and imperfect labour markets
Article
Costas-Fernández, J. and Lodato, S. 2024. Distributional effects of immigration and imperfect labour markets. Economics Letters. https://doi.org/10.1016/j.econlet.2024.111832
Type | Article |
---|---|
Title | Distributional effects of immigration and imperfect labour markets |
Authors | Costas-Fernández, J. and Lodato, S. |
Abstract | In canonical models, the labour share is orthogonal to immigration shocks in the long run, regardless of the impact of immigration on productivity. In contrast, this paper provides evidence that immigration increases labour productivity while reducing the labour share. We produce this evidence using data from Great Britain with a shift-share instrument that exploits European Union expansions and changes in immigration to other high-income countries. Our results are consistent with the predictions from imperfect labour market models, where immigrant and native workers are heterogeneous in skills, and the former have lower labour supply elasticities than the latter. A significant implication of our analysis is that immigration redistributes income from workers to employers. |
Keywords | Immigration; Productivity; Labour Share; Imperfect Labour Markets; Factor Income Distribution |
Sustainable Development Goals | 10 Reduced inequalities |
Middlesex University Theme | Health & Wellbeing |
Publisher | Elsevier |
Journal | Economics Letters |
ISSN | 0165-1765 |
Electronic | 1873-7374 |
Publication dates | |
Online | 01 Jul 2024 |
Publication process dates | |
Submitted | 01 Apr 2024 |
Accepted | 21 Jun 2024 |
Deposited | 26 Jun 2024 |
Output status | Published |
Accepted author manuscript | License File Access Level Open |
Copyright Statement | Crown Copyright © 2024 Published by Elsevier B.V. This is an open access article under the CC BY |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.econlet.2024.111832 |
Web of Science identifier | WOS:001272628200001 |
https://repository.mdx.ac.uk/item/158123
Download files
Accepted author manuscript
1-s2.0-S0165176524003161-main.pdf | ||
License: CC BY 4.0 | ||
File access level: Open |
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