published in: Industrial and Labor Relations Review, 2006, 59 (4), 630-652
This paper studies the impact of mass migration from the Former Soviet Union to Israel on
natives’ probability of moving from employment to non-employment in a segmented labor
market that is defined by various combinations of schooling, occupation, industry, district of
residence and experience. We find that the share of immigrants in a given labor market
segment is generally positively associated with the probability of natives to move from
employment in that segment to non-employment, both for males and females. However,
when segment fixed-effects are added, this effect is substantially reduced for males, and
disappears or is even reversed for females. We conclude that immigrants are negatively
selected into occupations with high turnover and that natives were not facing higher
probability to exit employment due to immigrants’ presence in a certain occupation. Allowing
the effect to vary across natives with different levels of education and experience reveals that
young men, educated men and workers in the private sector are adversely affected by the
presence of immigrants.
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