DP21326 The Elasticity of Substitution between Native and Immigrant Labor: A Meta-Analysis
Media/ Social Media
This paper presents the first comprehensive meta-analysis of the elasticity of substitution between native and immigrant labor, drawing on 1,091 estimates from 41 studies. We find strong evidence of selective reporting: less precise estimates are systematically associated with lower reported elasticities. Correcting for this bias using meta-regression and selection methods raises the implied elasticity from about 13 to about 22, implying about 40% less wage pressure from immigration than
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