Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295502 
Authors: 
Year of Publication: 
2014
Series/Report no.: 
CReAM Discussion Paper Series No. 36/14
Publisher: 
Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London, London
Abstract: 
This paper estimates the effect of immigration on native wages at the national level taking into account the endogenous allocation of immigrants across skill cells. Time-varying exogenous variation across skill cells for a given country is provided by interactions of push factors, distance, and skill cell dummies: distance mitigates the effect of push factors more severely for less educated and middle experienced. Because the analysis focuses on the United States and Canada, I propose a two-stage approach (Sub-Sample 2SLS) that estimates the fiist stage regression with an augmented sample of destination countries, and the second stage equation with the restricted sub-sample of interest. I derive asymptotic results for this estimator, and suggest several applications beyond the current one. The empirical analysis indicates a substantial bias in estimated OLS wage elasticities to immigration. Sub-sample 2SLS estimates average - 1:2 and are very stable to the use of alternative instruments.
Subjects: 
Immigration
Wages
Sub-Sample Two Stage Least Squares
JEL: 
J31
J61
Document Type: 
Working Paper

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