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Policy Study
The Labor Market Effects of Immigration

December 31, 2020

  • Author LEE. Jongkwan
  • Series No. Policy Study 2020-05
  • Language Korean
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Policy Study
The Labor Market Effects of Immigration

December 31, 2020

PDF
This paper studies the effect of immigration on the labor market outcomes of natives, using the variation in the inflow of immigrants across 229 local labor markets in South Korea. To prevent the bias from the selective location choices of immigrants, I exploit the national flow in overseas Koreans, interacted with the predetermined ethnic communities across areas.

During 2010-2015, while the increase in immigrants did not result in the overall job loss of natives, the number of jobs for low-skilled natives were decreased. Specifically, as one more immigrant locate in a region, 0.26 low-skilled native workers lost their jobs. These results suggest that the immigration induce the skill upgrading of native workers.

The inflow of immigrants may help in slowing down the decreasing trend of population in the noncapital region, because the share of immigrants in small-to-medium sized cities is relatively higher. New immigrants are likely to locate in those cities with immigrant communities. Moreover, the immigrants did not crowd out native population but attract natives for job-related reasons in the long-run. Therefore, policymakers should consider tools to facilitate the movement of immigrants to cities in the noncapital region, to ease the concentration of population in the Seoul capital region.
 
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Office of Global Economy
Providing Economic Forecast and Macroeconomic Policy Direction, the Groundwork for a Brighter Future

The Department of Macroeconomics is conducting researches on the macro economy and macroeconomic policy, particularly focusing on suggesting the analysis of macroeconomic trends and current status of the economy at home and abroad, the economic forecast, and the policy direction of the macro economy. The Department is also in charge of establishing, sustaining and maintaining various econometric models, based on which it analyses policy effects and develops a long-term economic forecast.

Main Tasks
  • Economic trend analysis, short- and long-term forecast
  • Policy study on macroeconomic management
  • Basic structural analysis on macroeconomic areas
  • Maintenance of multi-sectoral dynamic macroeconomic model
Department of Macroeconomic Policy
  • LEE. Tae Suk

    Director, Division of Analysis and Evaluation

    82-044-550-4725
  • CHO, Byungkoo On leave

    Director and Vice President, Department of North Korean Economy

    82-044-550-4725
  • LEE, Jongkyu

    Fellow

    82-044-550-4725
  • WEE, Hyeseung Dispatched

    Research Associate

    82-044-550-4725
  • NAM, Jinwook On leave

    Specialist

    82-044-550-4725
  • KIM, Seulki

    Research Associate

    82-044-550-4725
  • CHUN, Eunkyung

    Research Associate

    82-044-550-4725
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