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Native Danes have benefited from large numbers of non-European immigrants

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They got new, more complex jobs, at new firms, in the services sector, and got higher wages (irrespective of education level), and there was no change in the risk of being unemployed:

Using a database that includes the universe of individuals and establishments in Denmark over the period 1991-2008 we analyze the effect of a large inflow of non-European (EU) immigrants on Danish workers.  We first identify a sharp and sustained supply-driven increase in the inflow of non-EU immigrants in Denmark, beginning in 1995 and driven by a sequence of international events such as the Bosnian, Somalian and Iraqi crises.  We then look at the response of occupational complexity, job upgrading and downgrading, wage and employment of natives in the short and long run.  We find that the increased supply of non-EU low skilled immigrants pushed native workers to pursue more complex occupations.  This reallocation happened mainly through movement across firms.  Immigration increased mobility of natives across firms and across municipalities but it did not increase their probability of unemployment.  We also observe a significant shift in the native labor force towards complex service industries in locations receiving more immigrants.  Those mechanisms protected individual wages from immigrants competition and enhanced their wage outcomes.  While the highly educated experienced wage gains already in the short-run, the gains of the less educated built up over time as they moved towards jobs that were complementary to those held by the non-EU immigrants.

From a new working paper by Mette Foged and Giovanni Peri.  If you subscribe to the They Took Our Jobs Model of large immigrant inflows, take a look at these data yourself and try to explain what you see.

 

PS — Detroit should take notice


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