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Who competes with whom? — The wage effect of immigration
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School of Business |
Bachelor's thesis
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en
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29
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This thesis investigates the wage effects of immigration in the United States by comparing two empirical frameworks: the spatial approach and the national skill-cell approach. While spatial models estimate regional impacts accounting for mobility and capital adjustment, skill-cell models focus on narrowly defined labor groups under more restrictive assumptions. The analysis finds that differences in estimated wage effects largely reflect methodological design, particularly assumptions about labor substitutability and market segmentation. Although low-skilled natives may experience short-run wage pressures, broader effects on the economy are generally modest and often offset by gains in productivity, labor supply, and long-term growth. The findings emphasize the importance of model selection in evaluating immigration’s labor market impact.