The Labor Market Effects of Immigration

Abstract

This chapter discusses the effects of immigration on the labor market of receiving countries, focusing on employment. The effect of immigration on the welfare of native population is an important issue in public debate. The common perception is, at least in the short run, because of immigration, unemployment rates would increase in the host countries, or that immigrants would depress wages of native workers. However, these perceptions do not find confirmation in the previous research on this literature. According to Jean and Jimenez (2011), the evidence is, at best, mixed. Although the magnitude of the impact depends on time and space, in general, results of the previous literature indicate that immigration has only very small or no effect on employment and wages of resident workers. The aim of this chapter is to provide an overview of immigration-labor market relation for different countries and time intervals with some significant policy implications with regards to state officials.