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Michael AMIOR (Hebrew University of Jerusalem) – “« Monopsony and the Wage Effects of Migration “
February 9, 1:00 pm - 2:00 pm
The Microeconometrics Seminar: Every Tuesday
Time: 01:00 pm – 2:00 pm
Date: 9th of February 2021
Michael AMIOR (Hebrew University of Jerusalem) – “« Monopsony and the Wage Effects of Migration ”
Abstract: In a generalization of the well-known “immigration surplus” result, we showimmigration must always increase the average native worker’s marginal product,in any long-run constant returns economy. But in a monopsonistic labor market,immigration may also affect native wages through the mark-downs imposed byfirms. Using standard US census data, we reject the restrictions implied by thetraditional competitive model. We find that immigration increases mark-downs,and this effect quantitatively dominates the improvements in natives’ marginalproducts. The capture of migrants’ rents significantly expands the total surplusgoing to natives, but redistributes income among them (from workers to firms).
Benoît SCHMUTZ (Laboratoire de Microéconométrie-CREST)
Anthony STRITTMATTER (Laboratoire de Microéconométrie-CREST)