Distributional effects of immigration and imperfect labour markets

We provide evidence of the robustness of these results to a comprehensive set of specifications and different versions of the instrument. [...] Furthermore, the section contrasts the implications of the canonical model with the imperfect labour markets’ that allow for heterogeneity between migrants and natives in both skills and labour supply elasticities. [...] To illustrate how we compute this leave-one-out, consider the case of Swindon again and the national stock of Polish workers: we subtract the Polish population living in the NUTS-1 region South West of England, that contains Swindon, from the national total. [...] The magnitude of the impact of immigrants on job growth is easier to interpret if we redefine the endogenous variable as the contribution of immigration to workforce growth, i.e. [...] They show that with measurement error, the OLS estimator of the effect of immigration on productivity converges in probabi(lity to ) − − π̄(1− π̄)/n̄p lim β̂ = β 1 (1 γ) (20) (1−R2)σ2π Where π̄ is the average immigrant share, n̄ is the average region-year cell sample size, σ2π is the variance of the immigrant share, R2 is the R-squared from regressing the immigrant share on year and region fixed e.