Are Natives Displaced by Immigrants in a Developing Country? Evidence From Skill-Cell Approach

Esra Karapinar Kocag

Abstract


This paper investigates how immigration affects the employment outcome of natives in Turkey. We exploit both spatial correlation by using the variation across provinces and regions within skill groups and national level skill cell approach to see the general impact of immigration. Using population census data for the years 1990 and 2000, we find very small and statistically insignificant association between the share of immigrants and natives’ employment rate at province and regional levels; however, the results at national level shows that immigration affects natives’ employment outcome negatively. There is a couple of important areas where this study makes a contribution. First, we contribute to immigration literature by investigating immigration into a developing country, Turkey. Secondly, we consider a whole range of immigrants from different source countries contrary to the studies in the Turkish specific literature to identify a general equilibrium on the impact of immigration on natives’ labour market outcome as different countries may have different characteristics that influence the outcome of natives. Our results at national level is consistent with Borjas (2003; 2006).

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