Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295396 
Year of Publication: 
2011
Series/Report no.: 
CReAM Discussion Paper Series No. 21/11
Publisher: 
Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London, London
Abstract: 
We discuss approaches to estimating the effect that immigration has on wages of native workers which assume a three-level CES model, where immigrants and natives are allowed to be imperfect substitutes within an age-education cell, and predict the wage impact based on estimates of the elasticities of substitution at each level. We argue that this approach is sensitive to immigrants downgrading at arrival, and we illustrate the possible bias in estimating the elasticity of substitution between immigrants and natives.
Document Type: 
Working Paper

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