‘Crowded out’? Immigration Surge and Residents’ Employment Outcomes in Norway
DOI:
https://doi.org/10.18291/njwls.122596Keywords:
Employment, Wages, Unemployment & Rehabilitation, Labor Market Institutions & Social PartnersAbstract
This study uses Norwegian public register data in a spatial correlation approach, and analyzes associations between regional variations in immigration and employment outcomes 2004–2015 in a cohort of adult residents (N = 1.3 million). A higher share of immigrants in the regional population and an immigrant population dominated by low-educated were associated with slightly negative work income trends and less employment opportunities for residents, in particular for low- educated natives and earlier immigrants. A steep increase in the immigrant share of the regional population was, on the other hand, associated with better employment outcomes for all analyzed resident categories. Overall, regional immigration differences were only modestly related to the out- comes. Findings indicate that the institutional context has limited the role of market mechanisms in the labor market, and a booming regional economy will tend to neutralize potentially negative effects of immigration on residents’ employment.
References
Altonji, J. G. & Card, D. (1991). The effects of immigration on the labor market outomes of less-skilled natives. In J. M. Abowd & R. B. Freeman (Eds.), Immigration, Trade and the Labor Market (pp. 2001-2034). Chicago: University of Chicago Press.
Aslund, O. & Engdahl, M. (2019). Open borders, transport links, and local labor markets. International Migration Review, 53(3):706-735. doi:10.1177/0197918318789067
Barrabés, N. & Østli, G. K. (2015). Norsk Standard for Utdanningsgruppering. Revidert 2000 Dokumentasjon. Notater (Documents) 2015/37. Oslo: Statistics Norway.
Basten, C. & Siegenthaler, M. (2019). Do immigrants take or create residents' jobs? Evidence from free movement of workers in Switzerland. Scandinavian Journal of Economics, 121(3):994-1019. doi:10.1111/sjoe.12293
Bhuller, M. D. (2009). Inndeling av Norge i arbeidsmarkedsregioner [Classification of Norwegian labor market regions]. Notater 2009/24. Oslo: Statistics Norway.
Birkelund, G. E., Heggebo, K. & Rogstad, J. (2017). Additive or multiplicative disadvantage? The scarring effects of unemployment for ethnic minorities. European Sociological Review, 33(1):17-29. doi:10.1093/esr/jcw030
Bohlmark, A. & Willen, A. (2020). Tipping and the effects of segregation. American Economic Journal-Applied Economics, 12(1):318-347. doi:10.1257/app.20170579
Borjas, G. J. (2013). The analytics of the wage effect of immigration. IZA Journal of Migration 2(22/2013). doi:10.1186/2193-9039-2-22
Bratsberg, B. & Raaum, O. (2012). Immigration and wages: evidence from construction. Economic Journal, 122(565): 1177-1205. doi:10.1111/j.1468-0297.2012.02540.x
Bratsberg, B. & Raaum, O. (2013). Migrasjonsstrømmenes påvirkning på lønns- og arbeidsvilkår [Impact of migration on wages and working conditions]. Samfunnsøkonomen, 127(3), 18-29.
Bratsberg, B., Raaum, O., Roed, M. & Schone, P. (2014). Immigration wage effects by origin. Scandinavian Journal of Economics, 116(2): 356-393. doi:10.1111/sjoe.12053
Calmfors, L. & Gassen, N. S. (2019). Integrating Immigrants into the Nordic Labour Markets: Background, Summary and Policy Conclusions. In L. Calmfors & N. S. Gassen (Eds.), Integrating Immigrants into the Nordic Labour Markets (pp. 9-36). Copenhagen: Nordic Council of Ministers.
Constant, A. F. (2014). Do migrants take the jobs of native workers? IZA World of Labour, May 2014. doi: 10.15185/izawol.10
Dustmann, C., Frattini, T. & Preston, I. P. (2013). The effect of immigration along the distribution of wages. Review of Economic Studies, 80(1):145-173. doi:10.1093/restud/rds019
Dustmann, C., Schonberg, U. & Stuhler, J. (2016). The impact of immigration: ehy do studies reach such different results? Journal of Economic Perspectives, 30(4):31-56. doi:10.1257/jep.30.42.31
Dølvik, J. E. & Steen, J. R. (2018). The Nordic Future of Work. Drivers, Institutions, and Politics. TemaNord 2018:555. Copenhagen: Nordic Council of Ministers.
Edo, A. (2019). The impact of immigration on the labor market. Journal of Economic Surveys, 33(3):922-948. doi:10.1111/joes.12300
Eldring, L. & Ørjasæter, E. (2018). Løsarbeidersamfunnet [Appr. translation: Society of irregular employment]. Oslo: Cappelen Damm Akademisk.
Foged, M. & Peri, G. (2016). Immigrants' effect on native workers: new analysis on longitudinal data. American Economic Journal-Applied Economics, 8(2): 1-34. doi:10.1257/app.20150114
Friberg, J. H. & Midtbøen, A. H. (2019). The making of immigrant niches in an affluent welfare state. International Migration Review, 53(2): 322-345. doi:10.1177/0197918318765168
GAA. (1993). The General Application Act. Available at: https://www.regjeringen.no/globalassets/upload/ad/kampanjer/tariffnemnda/allmenngjoringsloven_sist_endret_2009_engelsk.pdf. Accessed June 5, 2020.
Hernes, V., Arendt, J. N., Joona, P. A. & Tronstad, K. R. (2019). Nordic integration and settlement policies for refugees. A comparative analysis of labour market integration outcomes. TemaNord Report 2019:529. Copenhagen: Nordic Council of Ministers.
Kerr, S. P. & Kerr, W. R. (2011). Economic impacts of immigration: A survey. NBER Working Paper No. 16736. Cambridge, MA: National Bureau of Economic Research.
Kiss, M. (2017). Understanding social dumping in the European Union. Briefing March 2017: European Parliament, Available at: https://www.europarl.europa.eu/RegData/etudes/BRIE/2017/599353/EPRS_BRI(2017)599353_EN.pdf. Accessed July 28, 2020.
Lewis, E. & Peri, G. (2014). Immigration and the economy of cities and regions. NBER Working Paper No. 20428. Cambridge, MA.: National Bureau of Economic Research.
Malchow-Moller, N., Munch, J. R. & Skaksen, J. R. (2012). Do immigrants affect firm-specific wages? Scandinavian Journal of Economics, 114(4):1267-1295. doi:10.1111/j.1467-9442.2012.01720.x
NAV. (2019). Grunnbeløpet i folketrygden [The Basic Amount in social security], https://www.nav.no/no/NAV+og+samfunn/Kontakt+NAV/Utbetalinger/Grunnbelopet+i+folketrygden, accessed 8 October, 2019.
NHO. (2020). Basics of Norwegian Labour Law, Available at: https://www.nho.no/en/english/articles/basic-labour-law/ Accessed August 12, 2020. Oslo: NHO [Norwegian Employers' Central Organization ].
Nilsen, Ø. A. (2020). The labor market in Norway, 2000-2018. IZA World of Labor(424v2). doi:10.15185/izawol.424.v2
NOSOSCO. (2015). Social Protection in the Nordic Countries 2014/2015. Scope, expenditure and financing, Report No. 60:2015. https://norden.diva-portal.org/smash/get/diva2:1059435/FULLTEXT02.pdf, accessed 25 May 2020. Copenhagen: Nordic Social Statistical Committee.
NSD/SSB. (2019). User Guide for microdata.no. Updated per September 2019. https://microdata.no/brukermanual-en.pdf. Bergen/Oslo: Norwegian Centre for Research Data and Statistics Norway.
OECD. (2012). International Migration Outlook 2012: OECD Publishing.
OECD. (2014). OECD Economic Surveys. Norway. March 2014. Paris: OECD Publishing.
OECD. (2016). International Migration Outlook 2016: OECD Publishing.
OECD. (2019). International Migration Outlook 2019, Available at: https://www.oecd.org/migration/international-migration-outlook-1999124x.htm. Accessed October 18, 2019. OECD Publishing.
OECD. (2020). Unemployment rate. Available at: https://data.oecd.org/unemp/unemployment-rate.htm. Accessed August 11, 2020. Paris: OECD Data.
Okkerse, L. (2008). How to measure labour market effects of immigration: a review. Journal of Economic Surveys, 22(1):1-30. doi:10.1111/j.1467-6419.2007.00533.x
Ortega, J. & Verdugo, G. (2016). Moving Up or Down? Immigration and the Selection of Natives across Occupations and Locations. IZA Discussion Paper No. 10303. Bonn: IZA – Institute of Labor Economics.
Ottaviano, G. I. P. & Peri, G. (2012). Rethinking the effect of immigration on wages. Journal of the European Economic Association, 10(1), 152-197. doi:10.1111/j.1542-4774.2011.01052.x
Peri, G. (2016). Immigrants, productivity, and labor markets. Journal of Economic Perspectives, 30(4):3-30. doi:10.1257/jep.30.4.3
Ruist, J. (2013). The labor market impact of refugee immigration in Sweden 1999-2007. Working Paper 2013:1. Stockholm: Stockholm University, Linnaeus Center for Integration Studies (SULCIS).
SSB. (2019a). Statistikkbanken: Lønn for ansatte [Wages/salaries for employees], Available at: https://www.ssb.no/statbank/table/11419/tableViewLayout1/?rxid=d0bd6742-3737-4c64-93b7-75798d16a71e. Accessed June 27, 2019. Oslo: Statistics Norway.
SSB. (2019b). Lønnstakerne på korttidsopphold mer konjunkturutsatt [Foreign employees with short term stays more exposed to economic fluctuations]. Available at: https://www.ssb.no/arbeid-og-lonn/statistikker/kortsys. Accessed September 10, 2019. Oslo: Statistics Norway.
SSB. (2020a). Sysselsetting, registerbasert [Employment statistics, register based], Available at: https://www.ssb.no/statbank/. Accessed September 7, 2020. Oslo: Statistics Norway.
SSB. (2020b). Immigrants and Norwegian-born to immigrant parents: Statistics Norway, Available at: https://www.ssb.no/en/innvbef. Accessed August 13, 2020.
Zorlu, A. & Hartog, J. (2002). The effect of immigration on wages in three European countries. Journal of Population Economics, 18(1):113-151. doi:10.1007/s00148-004-0204-3
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Author and Journal
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The Copyright Holder of this Journal is the authors and the Journal. Normally the journal use the CC-BY NC-ND 4.0 licence.
Exceptions to the license terms may be granted
If you want to use content in the Journal in another way then described by this license, you must contact the licensor and ask for permission. Contact Bo Carstens at bo.carstens@gmail.com. Exceptions are always given for specific purposes and specific content only.
Sherpa/Romeo
The Journal is listed as a blue journal in Sherpa/Romeo, meaning that the author can archive post-print ((ie final draft post-refereeing) and author can archive publisher's version/PDF.
Copyright of others
Authors are responsible for obtaining permission from copyright holders for reproducing any illustrations, tables, figures or lengthy quotations previously published elsewhere.
Archives policy
All published material is archived at Roskilde University Library, Denmark, and transmitted to the Danish Royal Library in conformity with the Danish rules of legal deposit.
Plagiarism screening
We do not screen articles for plagiarism. It is the responsibility of the authors to make sure they do not plagiate.