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Attenuation Bias in Measuring the Wage Impact of Immigration / Abdurrahman Aydemir, George J. Borjas.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Aydemir, Abdurrahman.
Contributor:
National Bureau of Economic Research.
Borjas, George J.
Series:
Working Paper Series (National Bureau of Economic Research) no. w16229.
NBER working paper series no. w16229
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2010.
Summary:
Although economic theory predicts an inverse relation between relative wages and immigration-induced supply shifts, it has been difficult to document such effects. The weak evidence may be partly due to sampling error in a commonly used measure of the supply shift, the immigrant share of the workforce. After controlling for permanent factors that determine wages in specific labor markets, little variation remains in the immigrant share. We find significant sampling error in this measure of supply shifts in Canadian and U.S. Census data. Correcting for the resulting attenuation bias can substantially increase existing estimates of the wage impact of immigration.
Notes:
Print version record
July 2010.

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