Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/university-of-wisconsin-press/remittances-and-the-wage-impact-of-immigration-5Xe2jxulY7
- Publisher
- University of Wisconsin Press
- Copyright
- ©by the Board of Regents of the University of Wisconsin System
- ISSN
- 1548-8004
- Publisher site
- See Article on Publisher Site
Abstract
abstract: This paper examines how the outflow of remittances affect the wages of native workers. The model shows that the wage impact of immigration depends on the competing effects of an increase in labor market competition and an increase in the consumer base. Immigrant remittances provide a unique way of isolating this latter effect because they reduce the consumer base but not the workforce. The predictions of the model are tested using an unusually rich German data set that has detailed information on remittances and wages. As expected, the results indicate that a 1 percent increase in remittances depress the wages of native workers by 0.06 percent. Furthermore, remittances predominantly affect workers in nontraded industries that are more reliant on domestic consumption.
Journal
Journal of Human Resources – University of Wisconsin Press
Published: Aug 9, 2015