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Immigration Wage Effects by Origin


  • We acknowledge funding from the Ministry of Labour (project “Labour Migration to Norway”), the Norwegian Research Council (grant 17352/S20, “The Impact of Immigration on Employment and Wages of Norwegian Workers”), and NORFACE (grant 415, “Migration: Integration, Impact and Interaction”). The paper is part of the research activities of the Centre of Equality, Social Organization, and Performance (ESOP), University of Oslo. Data made available by Statistics Norway have been essential for this research.


We estimate the direct partial wage effects of immigrant-induced increases in labor supply, using the national skill cell approach with longitudinal records drawn from Norwegian administrative registers. The results show overall negative but heterogeneous wage effects, with larger effects on immigrant wages than on native wages and with native wages more responsive to inflows from Nordic countries than from developing countries. These patterns are consistent with natives and Nordic citizens being close substitutes, while natives and immigrants from developing countries are imperfect substitutes. Estimates are sensitive to accounting for effective immigrant experience, selective native participation, and variation in demand conditions and native labor supply.