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on Urban and Real Estate Economics |
| By: | Gilles Duranton (University of Pennsylvania); Diego Puga (CEMFI, Centro de Estudios Monetarios y Financieros) |
| Abstract: | Why do cities grow in population, surface area, and income per person? Which cities grow faster and why? To these questions, the urban growth literature has offered a variety of answers. Within an integrated framework, this chapter reviews key theories with implications for urban growth. It then relates these theories to empirical evidence on the main drivers of city growth, drawn primarily from the United States and other developed countries. Consistent with the monocentric city model, fewer roads and restrictions on housing supply hinder urban growth. The fact that housing is durable also has important effects on the evolution of cities. In recent decades, cities with better amenities have grown faster. Agglomeration economies and human capital are also important drivers of city growth. Although more human capital, smaller firms, and a greater diversity in production foster urban growth, the exact channels through which those effects percolate are not clearly identified. Finally, shocks also determine the fate of cities. Structural changes affecting the broader economy have left a big footprint on the urban landscape. Small city-specific shocks also appear to matter, consistent with the recent wave of random growth models. |
| Keywords: | Urban growth, Agglomeration economies, Land use, Transportation, amenities. |
| JEL: | C52 R12 D24 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:cmf:wpaper:wp2013_1308&r=ure |
| By: | Joseph S. Tracy |
| Abstract: | Testimony before the U.S. Senate Committee on Banking, Housing and Urban Affairs, Washington, D.C. |
| Keywords: | Housing - Finance ; Government spending policy ; Credit ; Systemic risk ; Financial stability ; Uncertainty ; Mortgage-backed securities ; Mortgages |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsp:122&r=ure |
| By: | Valeria Ivaniushina (Sociology of Education and Science Lab, National Research University Higher School of Economics, St. Petersburg, Senior Researcher.); Daniel Alexandrov (Sociology of Education and Science Lab, National Research University Higher School of Economics, St. Petersburg, Professor.) |
| Abstract: | This article analyzes student pro-school/anti-school attitudes on different levels and explores their relation to educational outcomes. We examine the individual level, school level, and clique level predictors (clique is defined as a tight social group within a class social network). Cliques were identified using special software called Kliquefinder. We use multi-level regression approach on a sample of 7300 students from 104 public schools from St.Petersburg. Our findings show that: 1.) Socio-economic differentiation of Russian schools does not lead to a polarization of pro-school/anti-school attitudes in different types of schools; 2.) The polarization of attitudes emerges and is maintained at the clique level; and, 3.) Clique attitudes have a significant impact on educational outcomes (net of a student’s socio-demographic characteristics and individual attitudes). |
| Keywords: | pro-school/anti-school culture, peer effects, social network analysis, cliques. |
| JEL: | I21 C12 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:09edu2013&r=ure |
| By: | Wong, Maisy |
| Abstract: | Desegregation is a key policy issue in many countries. I investigate a residential desegregation program in Singapore - the ethnic housing quotas. I show that choice restrictions imposed on apartment blocks above the quota limits (constrained) could have distortionary effects, causing price and quantity differences for constrained versus unconstrained blocks. I test these predictions by hand matching more than 500,000 names in the phonebook to ethnicities, to calculate ethnic proportions at the apartment block level. I can then investigate differences for constrained and unconstrained blocks close to the quota limits and test for sorting around the limits. I find price differences are between 3% and 5%. Quantity effects are economically significant, translating to longer time-on-market durations by 1 to 1.4 months. Selection cannot fully explain these results. My results point to challenges in achieving desegregation using quantity restrictions. |
| Keywords: | Desegregation, quota, distortionary effects, housing transactions |
| JEL: | D04 R31 R38 |
| Date: | 2013–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51217&r=ure |
| By: | Beatrice Pataracchia; Rafal Raciborski; Marco Ratto; Werner Roeger |
| Abstract: | The paper provides an extension to first generation DSGE models with a financial sector – for which QUEST III would be a typical example – by explicitly modelling (mortgage) loan demand and supply decisions. We estimate a DSGE model with a housing sector where housing capital is used as collateral against which impatient consumers borrow from more patient lenders. While in existing estimated models with a construction sector the Loan-to-Value (LTV) ratio is imposed exogenously and constant (e.g., Iacoviello and Neri, 2010, In’t Veld et al., 2011), we introduce an endogenous LTV ratio by explicitly modelling the riskiness of loans in order to capture changing credit conditions. Using data of the Euro Area, we show that, compared to similar models with an exogenous LTV ratio, the business cycle properties of our model improve. The endogenous default mechanism allows estimating an important amplification mechanism driven by the riskiness of collateral values and propagating, in turn, into the real economy. Housing market-related shocks appear to be the main driver of the pre-crisis growth of mortgage-backed loans and a subsequent reversal of the sentiment on the housing market may have been a trigger that led to a credit crunch, house price bubble burst and a collapse in the construction sector. Shocks on the housing market had also a substantial impact on several demand aggregates, in particular, consumption. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:euf:ecopap:0505&r=ure |
| By: | Remi Jedwab; Alexander Moradi |
| Abstract: | What is the impact of modern transportation technology on long-run economic change in poor countries with high trade costs? Rail construction in colonial Sub-Saharan Africa provides a natural experiment: 90% of African railroad lines were built before independence, in a context where headloading was the dominant transportation technology. Using new data on railroads and cities over one century within one country, Ghana, and Africa as a whole, we find large permanent effects of transportation technology on economic development. First, colonial railroads had strong effects on commercial agriculture and urban growth before independence. We exploit various identification strategies to ensure these effects are causal. Second, using the fact that African railroads fell largely out of use post-independence, due to mismanagement and lack of maintenance, we show that colonial railroads had a persistent impact on cities. While colonial sunk investments (e.g., schools, hospitals and roads) partly contributed to urban path dependence, evidence suggests that railroad cities persisted because their early emergence served as a mechanism to coordinate contemporary investments for each subsequent period. Railroad cities are also wealthier than non-railroad cities of similar sizes today. This suggests a world where shocks to economic geography can trigger an equilibrium in which cities will emerge to facilitate the accumulation of factors, and thus have long-term effects on economic growth. |
| Keywords: | Transportation Technology; Development; Path Dependence; Growth |
| JEL: | R4 R1 O1 O3 N97 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2013-17&r=ure |
| By: | Bergström, Anna (Dept. of Economics); Krüger, Niclas (Swedish National Road and Transport Research Institute) |
| Abstract: | This paper addresses the lack of reliability within the Swedish rail network by identifying passenger train delay distributions. Arrival delays are analyzed in detail using data provided by the Swedish Transport Administration, covering all train departures and arrivals during 2008 and 2009. The paper identifies vulnerabilities by size, space and time in the network. Our results show that the delay distribution seems to be plagued by low probability high impact events. A major share of all delay time is associated with the tail of the delay distribution, indicating that extreme delays cannot be neglected when prioritizing between measures improving rail infrastructure. Delays are not only concentrated in size, but also concentrated in space and time and seem to follow a precise power law with respect to days and an exponential distribution with regard to stations. Moreover, we also examine the link between capacity usage and expected delay over different time scales. |
| Keywords: | Delay; Reliability; Passenger trains; Delay distribution; Value of time; Cost-benefit analysis |
| JEL: | H54 R42 |
| Date: | 2013–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kaunek:0010&r=ure |
| By: | Ron Martin; Peter Sunley |
| Abstract: | Over the past few years a new buzzword has entered academic, political and public discourse: the notion of resilience, a term invoked to describe how an entity or system responds to shocks and disturbances. Although the concept has been used for some time in ecology and psychology, it is now invoked in diverse contexts, both as a perceived (and typically positive) attribute of an object, entity or system and, more normatively, as a desired feature that should somehow be promoted or fostered. As part of this development, the notion of resilience is rapidly becoming part of the conceptual and analytical lexicon of regional and local economic studies: there is increasing interest in the resilience of regional, local and urban economies. Further, resilience is rapidly emerging as an idea ‘whose time has come’ in policy debates: a new imperative of ‘constructing’ or ‘building’ regional and urban economic resilience is gaining currency. However, this rush to use the idea of regional and local economic resilience in policy circles has arguably run somewhat ahead of our understanding of the concept. There is still considerable ambiguity about what, precisely, is meant by the notion of regional economic resilience, about how it should be conceptualized and measured, what its determinants are, and how it links to patterns of long-run regional growth. The aim of this paper is to address these and related questions on the meaning and explanation of regional economic resilience and thereby to outline the directions of a research agenda. |
| Keywords: | Shocks, Resilience, Robustness, Adaptability, Regional economies |
| JEL: | R10 R11 B52 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1320&r=ure |
| By: | Kathrine Lausted Veie (Department of Food and Resource Economics, University of Copenhagen); Toke Emil Panduro (Department of Food and Resource Economics, University of Copenhagen) |
| Abstract: | Hedonic models are subject to spatially correlated errors which are a symptom of omitted spatial variables, mis-specification or mismeasurement. Methods have been developed to address this problem through the use of spatial econometrics or spatial fixed effects. However, often spatial correlation is modeled without much consideration of the theoretical implications of the chosen model or treated as a nuisance to be dealt with holding little interest of its own. We discuss the limitations of current standard spatial approaches and demonstrate, both empirically and theoretically the generalized additive model as an alternative. The generalized additive model is compared with the spatial error model and the fixed effects model. We find the generalized additive model to be a solid alternative to the standard approaches, having less restrictive assumptions about the omitted spatial processes while still being able to reduce the problem of spatial autocorrelation and provide trustworthy estimates of spatial variables. However, challenges connected with spatially varying data remain. The choice of flexibility in the spatial structure of the model affects estimated parameters of some spatially varying characteristics markedly. This suggests that omitted variable bias may remain an important problem. We advocate for an increased use of sensitivity analysis to determine robustness of estimates to different models of the (omitted) spatial processes. |
| Keywords: | hedonic valuation, spatial econometrics, generalized additive model |
| JEL: | Q51 R30 R52 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2013_18&r=ure |
| By: | Dean Baker; Nicole Woo |
| Abstract: | There have been a number of proposals for replacing the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, with a system under which private financial institutions would issue mortgage-backed securities (MBS) that carry a government guarantee. This paper raises a number of questions about the merits of such a system. It points out that both the gains to low-income families seeking to become homeowners from such a system and interest rate savings are likely to be relatively modest, and that there are few obvious safeguards that would make this new system sounder than the system of privately-issued mortgage-backed securities in the bubble years. |
| Keywords: | housing, gses, mortgages, |
| JEL: | H H2 H24 G G2 G21 G28 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2013-15&r=ure |
| By: | Hott, Christian |
| Abstract: | We develop a theoretical model of mortgage loss rates that evaluates their main underlying risk factors. Following the model, loss rates are positively influenced by the house price level, the loan-to-value of mortgages, interest rates, and the unemployment rate. They are negatively influenced by the growth of house prices and the income level. The calibration of the model for the US and Switzerland demonstrates that it is able to describe the overall development of actual mortgage loss rates. In addition, we show potential applications of the model for different macroprudential instruments: stress tests, countercyclical buffer, and setting risk weights for mortgages with different loan-to-value and loan-to-income ratios. -- |
| Keywords: | Mortgage Market,Credit Risk,Macroprudential Instruments |
| JEL: | E5 G21 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:342013&r=ure |
| By: | Börjesson, Maria (KTH); Jonsson , Daniel (KTH); Berglund, Svante (WSP); Almström , Peter (WSP) |
| Abstract: | Cost-Benefit analysis (CBA) is sometimes criticized for not taking account of induced demand due to planning policy or relocalization triggered by large infrastructure investments. There is also a notion among planers and decision makers that accounting for these effects can underestimate the relative merits of rail investments. In this paper we explore if induced demand from relocalization triggered by an infrastructure investment have any significant impact on the CBA outcome. A second aim is to investigate the robustness of the relative CBA ranking of rail and road investments with respect to the general planning policy in the region 25 years ahead. We use a large-scale integrated land-use and traffic model calibrated for the Stockholm region. We find that the induced demand from relocalization triggered by infrastructure investments has a very limited impact on the CBA outcome. This result is largely due to the fact that the population that relocates over 20-30 years is limited in comparison to the total population. Moreover, the uncertainty in the CBA outcome, and in particular the relative ranking of rail and road investments, caused by uncertainties in future land-use policies is limited. As expected, however, the CBA outcome of rail investments is to a larger extent dependent on stronger planning policy than road investments. The results underscores that the planning policy in the region have a considerably stronger impact on accessibility and total car use than individual road or rail investments. Only the largest road investment, a second bypass in the region, induces car use of the same magnitude as the impact of the planning policy in the region. |
| Keywords: | Cost-Benefit Analysis; Transport planning; Land-use planning |
| JEL: | C25 D61 J22 R41 R42 |
| Date: | 2013–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2013_032&r=ure |
| By: | Kondo, Kazumine; Harimaya, Kozo |
| Abstract: | In this study, we investigate the market characteristics of prefectures in which non-local regional banks of other prefectures choose to enter and the motivations of such banks for doing so, considering the Japanese government’s requirements for regional financial institutions to play an active role in stimulating local economies. In particular, by pooling prefecture-level data, the market characteristics of prefectures that experience more entrances by non-local regional banks compared with other prefectures are examined. It was found that entrance by non-local regional banks is more common in prefectures where high-performing companies are active. Therefore, it can be considered that non-local regional banks that are not satisfied with lending opportunities in their home prefectures enter other prefectures to increase their lending opportunities to high-performing companies. This study contributes by clarifying why many regional banks do not concentrate on businesses within their local regions and intentionally enter other prefectures, which is in contrast with the intent of the region-based relationship banking policy. |
| Keywords: | region-based relationship banking, non-local regional banks, entries into other prefectures, characteristics of regional markets, expanding lending opportunities. |
| JEL: | G21 |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51134&r=ure |
| By: | Ron Boschma |
| Abstract: | This paper discusses two influential policy concepts at the European level that aim to promote economic diversification of regions, that is the Constructing Regional Advantage concept (CRA) and the Smart Specialization concept (SS). Both approaches are in favour of policy intervention but defy ‘one-size-fits-all’ policies as well as ‘stand-alone’ policies that create new activities in regions from scratch. Although ‘picking-the-winner’ policies are rejected, both policy frameworks identify and prioritise ‘promising’ targets for policy intervention, but they do so differently. The SS concept organizes this identification process through entrepreneurial discovery in which entrepreneurs select the domains of future specialization. The CRA concept focuses on identifying related variety and bottlenecks that prevent related industries in regions to connect and interact. Crucial in both frameworks is the strong involvement of local stakeholders. However, both approaches also agree that rent-seeking behavior, corruption and lock-in are potential threats to effective policy making. To avoid this, both are in favor of an open and inclusive approach and a policy implementation process that is closely monitored. The paper argues that the two policy concepts can provide useful inputs to develop a smart and comprehensive policy design that focuses on true economic renewal in regions and that avoids rent-seeking behaviour of vested players. |
| Keywords: | smart specialization, constructing regional advantage, Regional Cohesion Policy |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1322&r=ure |
| By: | Berliant, Marcus; Weiss, Adam |
| Abstract: | We examine econometric and elementary economic theory issues arising from the model specification in Henderson, Storeygard and Weil (2012), that uses night light data to proxy for missing or unreliable GDP growth data. An alternative approach based on the expenditure function is outlined. It can accommodate prices as well as quantity information from other commodity markets. |
| Keywords: | GDP, Night light data, Omitted variable, Expenditure function, Spatial autocorrelation |
| JEL: | D11 D61 O47 O57 |
| Date: | 2013–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51055&r=ure |
| By: | Pierre-Daniel G. Sarte; Esteban Rossi-Hansberg; Fernando Parro; Lorenzo Caliendo |
| Abstract: | We study the impact of regional and sectoral productivity changes on the U.S. economy. To that end, we consider an environment that captures the effects of interregional and intersectoral trade in propagating disaggregated productivity changes at the level of a sector in a given U.S. state to the rest of the economy. The quantitative model we develop features pairwise interregional trade across all 50 U.S. states, 26 traded and non-traded industries, labor as a mobile factor, and structures and land as an immobile factor. We allow for sectoral linkages in the form of an intermediate input structure that matches the U.S. input-output matrix. Using data on trade flows by industry between states, as well as other regional and industry data, we calibrate the model and carry out a variety of counterfactual experiments that allow us to gauge the impact of regional and sectoral productivity changes. We find that such changes can have dramatically different effects depending on the sectors and regions affected. In extreme cases, increases in productivity can have negative effects on real GDP (although welfare effects remain positive). |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:13-14&r=ure |
| By: | Paige Ouimet; Rebecca Zarutskie |
| Abstract: | Young firms disproportionately employ young workers, controlling for firm size, industry, geography and time. The same positive correlation between young firms and young employees holds when we look just at new hires. On average, young employees in young firms earn higher wages than young employees in older firms. Further, young employees disproportionately join young firms with greater innovation potential and that exhibit higher growth, conditional on survival. These facts are consistent with the argument that the skills, risk tolerance, and career dynamics of young workers are contributing factors to their disproportionate share of employment in young firms. Finally, we show that an increase in the regional supply of young workers is positively related to the rate of new firm creation, especially in high tech industries, suggesting a causal link between the supply of young workers and new firm creation. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2013-75&r=ure |
| By: | Georgette A. Fernandez Laris (UP1 UFR02 - Université Paris 1, Panthéon-Sorbonne - UFR d'Économie - Université Paris I - Panthéon-Sorbonne - PRES HESAM) |
| Abstract: | Using a geographical approach, I exploit the regional (city) variation in the proportion of Mexican households deciding to send a migrant to the U.S across two quinquennial periods to estimate the causal effect of emigration on the local price indices of eight distinct groups of goods and services. To overcome the endogeneity of the emigration decision, I employ an instrumental variables approach that relies on the deep historical roots and high persistence characteristic of Mexican migration. My results show that emigration had a significant negative effect across all price index product classifications. Moreover, they suggested that emigration is more likely to affect non-traded good items and services than tradable products since the magnitude of the negative effect rose when restricting the analysis to the non-tradable good components within each price index classification. |
| Keywords: | émigration mexicaine, réseaux de migrants, prix, indice des prix à la consommation, pouvoir d'achat, biens marchand, biens non-marchands |
| Date: | 2013–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:dumas-00877861&r=ure |
| By: | Manuel Förster (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain (UCL) - Belgique); Ana Mauleon (CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain (UCL) - Belgique, CEREC - Université Saint-Louis - Bruxelles); Vincent Vannetelbosch (CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain (UCL) - Belgique, CEREC - Université Saint-Louis - Bruxelles) |
| Abstract: | We investigate the role of manipulation in a model of opinion formation where agents have opinions about some common question of interest. Agents repeatedly communicate with their neighbors in the social network, can exert some effort to manipulate the trust of others, and update their opinions taking weighted averages of neighbors' opinions. The incentives to manipulate are given by the agents' preferences. We show that manipulation can modify the trust structure and lead to a connected society, and thus, make the society reaching a consensus. Manipulation fosters opinion leadership, but the manipulated agent may even gain influence on the long-run opinions. In sufficiently homophilic societies, manipulation accelerates (slows down) convergence if it decreases (increases) homophily. Finally, we investigate the tension between information aggregation and spread of misinformation. We find that if the ability of the manipulating agent is weak and the agents underselling (overselling) their information gain (lose) overall influence, then manipulation reduces misinformation and agents converge jointly to more accurate opinions about some underlying true state. |
| Keywords: | Social networks; trust; manipulation; opinion leadership; consensus; wisdom of crowds |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00881145&r=ure |
| By: | Ann Carpenter |
| Abstract: | Communities have faced a variety of crises in recent decades, including more frequent and severe natural disasters. As applied to disasters, resilience entails the ability of a community to rebound following a hurricane, earthquake, or other disturbance. Given the importance of resilience in promoting an effective recovery, the factors that contribute to community resilience are of great interest to scholars and practitioners in many fields. Recent work has examined, for example, socioeconomic indicators that contribute to greater social vulnerability and organizational structures that contribute to a more effective recovery. The importance of strong social networks in resilience is among the most oft-repeated lessons learned in recent scholarship. This paper examines the intersection of three connected threads in the literature to understand one particular aspect of resilience: how the built environment contributes to greater resilience by supporting and encouraging strong social networks. Given that social networks positively influence resilience and that the built environment exerts influence on social networks, this literature review examines evidence linking strong social networks, a varied and integrated built environment, and greater resilience. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedacd:2013-02&r=ure |
| By: | Albrecht Glitz |
| Abstract: | This paper studies the role coworker-based networks play for individual labour market outcomes. I analyse how the provision of labour market relevant information by former coworkers affects the employment probabilities and, if hired, the wages of male workers who have previously become unemployed as the result of an establishment closure. To identify the causal effect of an individual worker's network on labour market outcomes, I exploit exogenous variation in the strength of these networks that is due to the occurrence of mass-layoffs in the establishments of former coworkers. The empirical analysis is based on administrative data that comprise the universe of workers employed in Germany between 1980 and 2001. The results suggest a strong positive effect of a higher employment rate in a worker's network of former coworkers on his re-employment probability after displacement: a 10 percentage point increase in the prevailing employment rate in the network increases the re-employment probability by 7.5 percentage points. In contrast, there is no evidence of a statistically significant effect on wages. |
| Keywords: | networks, labor markets, employment, wages |
| JEL: | J63 J64 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:731&r=ure |
| By: | Belik, Ivan (Dept. of Business and Management Science, Norwegian School of Economics); Hexmoor, Henry (Dept. of Computer Science, Southern Illinois University at Carbondale) |
| Abstract: | The analysis of social reasoning is at the core of understanding how to manage social networks. Since interpersonal relations are composed of multiple factors with different nature (i.e., structural and social factors), we explore their influence on the strategizing processes in social networks. We formalize interpersonal relations using the methods of structural and social analysis. As a part of the research, we develop the soft-ware application for the numerical visualization of the social network functioning based on the proposed mechanism. |
| Keywords: | Agent’s power; social networks; structural centrality; trust |
| JEL: | Z13 |
| Date: | 2013–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2013_011&r=ure |
| By: | Duffy, David; Timoney, Kevin; Walsh, John R. |
| Keywords: | qec |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:esr:resnot:rn2013/2/4&r=ure |
| By: | Pedro S. Martins, Matloob Piracha and José Varejão |
| Abstract: | Using matched employer-employee data, we analyse the impact of immigrants on natives’ employment in Portugal. Using different model specifications, we show that the natives and immigrants are ‘complements’ at most occupation levels, in the sense that both types are hired when the number of immigrants is increasing. Controlling for different skill-level groups as well as for temporary and permanent jobs, the estimates show that, contrary to the evidence from some existing literature, the natives at the lower end of the skills spectrum are not affected by the presence of immigrants as well. There is, however, some evidence that when the number of immigrants in the firm is decreasing, natives tend to replace immigrants. |
| Keywords: | matched employer-employee data, displacement, immigrants. |
| JEL: | J15 J61 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:44&r=ure |