Occupation and Pay across the Generations: The Labour Market Experience of Four Ethno-religious Groups in Britain

Longhi S., Nicoletti C., Platt L. (2012) Occupation and Pay across the Generations: The Labour Market Experience of Four Ethno-religious Groups in Britain, in Social Stratification: Trends and Processes, ed. by P. Lambert, R. Connelly, B. Blackburn, V. Gayle, Ashgate: 151-165.

Job Competition and the Wage Curve

The wage curve literature consistently finds a negative relationship between regional unemployment rates and regional wages; the most widely accepted theoretical explanations interpret the unemployment rate as a measure of job competition. This paper proposes new ways of measuring job competition, alternative to the unemployment rate, and finds that the negative relationship still holds when job competition is measured following the job search literature. While for men the wage impact of the theoretically based measures of job competition is rather similar to the wage impact of the unemployment rate, for women the difference is substantial.

Longhi S. (2012) Job Competition and the Wage Curve, Regional Studies, 46 (5) 611-620.

Interpreting Wage Gaps of Disabled Men: The roles of productivity and of discrimination

Using the UK Labour Force Survey, we study wage gaps for disabled men after the introduction of the Disability Discrimination Act. We estimate wage gaps at the mean and at different quantiles of the wage distribution and decompose them into a part explained by differences in workers’ and job characteristics, a part that can be ascribed to health‐related reduced productivity, and a residual part. The large original wage gaps reduce substantially when we control for differences in education and occupation, although significant residuals remain. However, when we isolate productivity differences between disabled and nondisabled workers, the residual wage gap becomes insignificant in most cases.

Longhi S., Nicoletti C., Platt L. (2012) Interpreting Wage Gaps of Disabled Men: The roles of productivity and of discrimination, Southern Economic Journal, 78 (3) 931-953.

Occupational Change in Britain and Germany

We use British and German panel data to analyse job changes involving a change in occupation. We assess: (1) the extent of occupational change, taking into account the possibility of measurement error in occupational codes; (2) whether job changes within the occupation differ from occupation changes in terms of the characteristics of those making such switches; and (3) the effects of the two kinds of moves in respect of wages and job satisfaction. We find that occupation changes differ from other job changes, generally reflecting a less satisfactory employment situation, but also that the move in both cases is positive in respect of change in wages and job satisfaction.

Longhi S., Brynin M. (2010) Occupational Change in Britain and Germany, Labour Economics, 17 (4): 655-666.

Joint Impacts of Immigration on Wages and Employment: Review and Meta-analysis

A burgeoning literature has emerged during the last two decades to assess the economic impacts of immigration on host countries. In this paper, we outline the quantitative approaches presented in the literature to estimate the impact of immigration on the labour market, particularly at the regional level. We then revisit the joint impacts of immigration on wages and employment using a meta-analytic approach. As a novel contribution to previous meta-analyses on labour market impacts, we use a simultaneous equations approach to the meta-analysis of wage and employment effects. Using 129 effect sizes, we find that the observed local wage and employment effects are very small indeed. Generally, the employment impact is more pronounced in Europe than in the United States. Controls for endogeneity show a somewhat more negative impact. Wage rigidity increases the magnitude of the employment impact on the native born. The demarcation of the local labour market in terms of geography and skills matters also.

Longhi S., Nijkamp P., Poot J. (2010) Joint Impacts of Immigration on Wages and Employment: Review and Meta-analysis, Journal of Geographical Systems, 12 (4) 355-387.

Meta-analyses of Labour Market Impacts of Immigration: Key Conclusions and Policy Implications

The number of immigrants across the world has doubled since 1980. The estimates of the impact of immigration on wages and employment in host countries are quantitatively small but vary widely. We summarize previous meta-analyses of the empirical literature and consider the implications for policy. We conclude that, on average, the impact on employment of the native born is smaller than on wages, while impacts are generally smaller in the US than in other countries studied to date. The variation in the estimates is related to the definition of the labour market, the extent of substitutability of foreign and native workers, and controls for endogeneity of immigrant settlement in statistical modelling. Policies enhancing labour-market flexibility, while at the same time improving immigrant economic integration, are likely to be effective in reducing transitory negative impacts.

Longhi S., Nijkamp P., Poot J. (2010) Meta-analyses of Labour Market Impacts of Immigration: Key Conclusions and Policy Implications, Environment and Planning C: Government and Policy, 28 (5) 819-833.

Overqualification, Major or Minor Mismatch?

A proportion of employees are overqualified for their work. This generates a wage premium relative to the job but a penalty relative to the qualification, and is therefore. A puzzle for human capital theory. A part of this derives from the use of measures of time spent in education for the calculation of overqualification. Analysing data from four European countries, we split years of education into two components, one reflecting certification, another reflecting time. While a qualification higher than required mostly generates a wage premium, time does not. The result is that the combination of time with excess (or deficit) qualification may make overqualification either a major or a minor mismatch. The probability of either outcome varies with the institutional arrangements of different countries’ educational systems.

Brynin M., Longhi S. (2009) Overqualification, Major or Minor Mismatch?, Economics of Education Review, 28 114-121.

Meta-analysis of Empirical Evidence on the Labour Market Impact of Immigration

The increasing proportion of immigrants in the population of many countries has raised concerns about the ‘absorption capacity’ of the labour market, and fuelled extensive empirical research in countries that attract migrants. In previous papers we synthesized the conclusions of this empirical literature by means of meta-analyses of the impact of immigration on wages and employment of native-born workers. While we have shown that the labour market impacts in terms of wages and employment are rather small, the sample of studies available to generate comparable effect sizes was severely limited by the heterogeneity in study approaches. In the present paper, we take an encompassing approach and consider a broad range of labour market outcomes: wages, employment, unemployment and labour force participation. We compare 45 primary studies published between 1982 and 2007 for a total of 1,572 effect sizes. We trichotomise the various labour market outcomes as benefiting, harming or not affecting the native born, and use an ordered probit model to assess the relationship between this observed impact and key study characteristics such as type of country, methodology, period of investigation and type of migrant.

Longhi S., Nijkamp P., Poot J. (2008) Meta-analysis of Empirical Evidence on the Labour Market Impact of Immigration, Région et Développement, 27 (1) 161-191.
IZA Discussion Paper 3418

The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis

Immigration is a phenomenon of growing significance in many countries. Increasing social tensions are leading to political pressure to limit a further influx of foreign-born persons on the grounds that the absorption capacity of host countries has been exceeded and social cohesion threatened. There is also in public discourse a common perception of immigration resulting in economic costs, particularly with respect to wages and employment opportunities of the native born. This warrants a scientific assessment, using comparative applied research, of the empirical validity of the perception of a negative impact of immigration on labour market outcomes. We apply meta-analytic techniques to 165 estimates from 9 recent studies for various OECD countries and assess whether immigration leads to job displacement among native workers. The ‘consensus estimate’ of the decline in native-born employment following a 1 percent increase in the number of immigrants is a mere 0.024 percent. However, the impact is somewhat larger on female than on male employment. The negative employment effect is also greater in Europe than in the United States. Furthermore, the results are sensitive to the choice of the study design. For example, failure to control for endogeneity of immigration itself leads to an underestimate of its employment impact.

Longhi S., Nijkamp P., Poot J. (2008) The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis, in Migration and Human Capital, ed. by J. Poot, B. Waldorf, and L. van Wissen, Edward Elgar: 173-193.
Also published as: The Fallacy of “Job Robbing”: A Meta-Analysis of Estimates of the Effect of Immigration on Employment, Journal of Migration and Refugee Issues, 1(4) 131-152 (2005).
IZA Discussion Paper 2044