Low-Skilled Immigration and the Labor Supply of Highly Skilled Women

American Economic Journal Applied Economics (Impact Factor: 2.76). 07/2011; 3(3):88-123. DOI: 10.1257/app.3.3.88
Source: RePEc


Low-skilled immigrants represent a significant fraction of employment in services that are close substitutes of household production. This paper studies whether the increased supply of low-skilled immigrants has led high-skilled women, who have the highest opportunity cost of time, to change their time-use decisions. Exploiting cross-city variation in immigrant concentration, we find that low-skilled immigration increases average hours of market work and the probability of working long hours of women at the top quartile of the wage distribution. Consistently, we find that women in this group decrease the time they spend in household work and increase expenditures on housekeeping services. (JEL J16, J22, J24, J61)

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Available from: José Tessada, May 08, 2014
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    • "The large inflow of low-skilled Hispanic immigrants into the American labour market partly explains the strong expansion of low-end service jobs in the United States over the 1990s (Wright and Dwyer, 2003: 309). Without a growing pool of workers willing to fill these lowwage jobs, the wages of these jobs would have had to rise, these services would have become more expensive and these jobs would not have been created in the market, but been partly substituted by household production (Cortes and Tessada, 2011). In the period under study, a possible equivalent to Hispanic immigration in the United States was the strong surge in Polish and Baltic immigration to Britain in the early 2000s – a migratory flow which was much larger than in Germany or Denmark. "
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    ABSTRACT: Welfare states are often reduced to their role as providers of social protection and redistribution. In 1990, Esping-Andersen argued that they also affect employment creation and the class structure. We analyse the stratification outcomes for three welfare regimes – Britain, Germany and Denmark – over the 1990s and 2000s. Based on individual-level surveys, we observe a disproportionate increase among professionals and managers, and a decline among production workers and clerks. The result is clear-cut occupational upgrading in Denmark and Germany. In Britain, high and low-end service jobs expanded, resulting in a polarized version of upgrading. Growth in low-end service jobs – and thus polarization – is no precondition for full employment. Both Britain and Denmark halved their low-educated unemployment rate between 1995 and 2008. Yet low-end service jobs expanded only in Britain, not in Denmark. The cause is the evolution of labour supply: rising educational attainment means that fewer low-educated workers look for low-skilled jobs.
    Full-text · Article · Feb 2015 · Journal of European Social Policy
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    • "Table 4 shows that this coefficient is mostly driven by women, while is not statistically significant for men. Cortes and Tessada (2011) provides evidence of a positive effect on female labor supply through the increase in the supply of household help. These findings may be explained by partial complementarity between immigrants and natives -in particular, native women -and their different propensities to work nonstandard hour shifts (for instance, D' Amuri and Peri (2010); Peri and Sparber (2009)). "
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    ABSTRACT: This paper documents the effect of immigrant concentration on natives’ work schedules. I show that immigrants are more likely to work at non‐standard hours (i.e. evenings, nights and Sundays) and that a higher proportion of immigrants in the local labor market is associated with a lower probability of employed natives working non‐standard shifts. Results are strongest in sectors and occupations that are more accessible to immigrants. In particular, I find that a 1 standard deviation increase in the foreign population residing in a province is associated to a 4% reduction in the natives’ likelihood of working non standard hours. JEL codes J15, J81, J61
    Preview · Article · Jan 2012
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    • "To the best of our knowledge, there are only three studies to date which have investigated the relationship between immigration and native labour supply: Cortès and Tessada (2001) were the rst to analyse this question using US data. They provided evidence to show that low-skilled immigration had aected women at the top quartile of the wage distribution , by increasing the intensive margin of their labour supply, reducing their time spent on household work and increasing their expenditure on housekeeping services. "
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    ABSTRACT: This paper aims to detect whether or not people could work for more years in the presence of a more flourishing and cheaper formal care market, which, in turn, would provide support for people who are still at work and who have to cope with the care of their elderly parents and relatives. We focus on the flow of immigrants as a key variable in order to detect whether or not this channel is at work. We disentangle retirement decisions, first by modelling retirement choice using a simple life-cycle framework in which caring for parents is introduced into the choice set. We then correlate retirement choice with the gap between the foregone salary if early retirement is chosen and the price of formal care. The findings show that immigrants contribute to the postponement of retirement for women only.According to our estimates, we predict that the increase in immigration rate (equal to 4 percentage points) which occurred over the period 2000-2008 raised the retirement age for Italian women (with parents who are still alive) by almost one year, while the impact on men was non-existent.
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