Dustmann, C; Schönberg, U; (2025) Linking empirical evidence to theory: a framework for understanding immigration's labor market effects. In: Handbook of Labor Economics. (pp. 447-548). Elsevier

Text HandbookChapter_Complete.pdf - Accepted Version Access restricted to UCL open access staff Download (4MB)

Abstract

This chapter offers a novel approach to analyzing the effects of immigration on labor markets by structuring the discussion around a conceptual framework that links empirical estimates to fundamental structural parameters. This framework facilitates a clear interpretation and comparison of the parameters estimated by different empirical methods and clarifies the specific questions each method addresses. Section 2 introduces the canonical labor market model as a foundation for categorizing empirical approaches. Section 3 details the empirical approaches. Section 4 differentiates between immigration's impacts on regions and workers, proposing a framework to connect these perspectives. Recognizing the limitations of the basic canonical model, Section 5 explores extensions that incorporate critical adjustment mechanisms to immigration shocks, such as endogenous technology adoption, innovation, and product price adjustments. Section 6 broadens the analysis by examining monopsonistic labor markets and search frictions, moving beyond the assumption of perfect competition. Finally, Section 7 concludes with a discussion of unexplored research questions that are pivotal for advancing the understanding of immigration's labor market effects and shaping future research agendas.

Download activity - last month

Export as JSONCSVXML

Download activity - last 12 months

Export as XMLCSVJSON

Downloads by country - last 12 months

Export as JSONCSVXML

Archive Staff Only

View Item