Do Immigrants Affect Firm-Specific Wages?

Nikolaj Malchow-Møller, Jakob R. Munch, Jan Rose Skaksen

Research output: Contribution to journalJournal articleResearchpeer-review


We propose and test a novel effect of immigration on wages. Existing studies have focused on the wage effects that result from changes in the aggregate labour supply in a competitive labour market. We argue that if labour markets are not fully competitive, immigrants might also affect wage formation at the most disaggregate level – the workplace. Using linked employer−employee data, we find that an increased use of low‐skilled immigrant workers has a significantly negative effect on the wages of native workers at the workplace – also when controlling for potential endogeneity of the immigrant share using both fixed effects and instrumental variables.
Original languageEnglish
JournalScandinavian Journal of Economics
Issue number4
Pages (from-to)1267-1295
Number of pages29
Publication statusPublished - Dec 2012


  • Immigration
  • Imperfect labour markets
  • Natives
  • Wage formation

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