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Andreas Moxnes, University of Oslo Print
Tuesday, 13 November 2018, 14:00 - 15:15

Andreas Moxnes, University of Oslo

Opening  the  Floodgates:  Immigration  and  Structural Change 

Abstract : This  paper  investigates  the  impact  of  a  large  shock  to  labor  supply  on  industry growth  and  structural  change.  The  EU  enlargement  of  2004  and  2007  lead  to  an  unprecedented  migration  wave  to  Norway.  The  country  received  the  largest  number  of migrants  relative  to  country  size,  compared  to  all  other  developed  countries,  over  the ensuing  decade.  We  develop  a  simple  factor-proportions  theory  and  sufficient  statistic approach  that  can  be  used  to  identify  the  aggregate  impact  of  a  labor  supply  shock across  occupations  on  industry  growth.  Using  detailed  data  on  industry  performance, immigration  by  occupation  and  occupational  characteristics,  we  introduce  a  new  instrument  that  exploits  the  fact  that  language  barriers  in  the  Norwegian  labor  market are  significant  for  foreign  workers  and  that  they  vary  across  occupations  and  source countries.  Our  results  point  to  migration  leading  to  large  adjustments  in  industry  size, and  in  particular  to  sectors  of  the  economy  that  are  intensive  in  the  use  of  immigrant occupations. 


Location: R42.2.113
Contact: Nancy De Munck - This e-mail address is being protected from spam bots, you need JavaScript enabled to view it