The Effects of Temporary Immigrant Labor
Submission Type
Event
Expected Graduation Date
2013
Location
Room C102, Center for Natural Sciences, Illinois Wesleyan University
Start Date
4-20-2013 10:00 AM
End Date
4-20-2013 11:00 AM
Disciplines
Economics
Abstract
An important recent labor market trend is the rapid increase in the number of immigrants employed in the information technology sector who have temporary worker status. Economic theory suggests that temporary immigrant workers will be affected more adversely than native workers during a recession. This study uses OLS regression models to predict both wages and employment levels (through usual hours worked) in IT occupations as a function of immigration status, education level, age, gender, the recession and a set of interactive terms. The results from this study unexpectedly show that in the IT sector, employment of native workers fell during the recession while the employment of temporary immigrant workers rose. Also surprising is that wages of temporary immigrant workers in the IT sector do not appear to be significantly different from wages of natives in that sector even during the recession. This suggests that employers retained temporary workers and even added to their employment to maximize productivity and fill a skills gap in the IT sector, rather than realize alternative benefits of retaining native workers in long term positions.
The Effects of Temporary Immigrant Labor
Room C102, Center for Natural Sciences, Illinois Wesleyan University
An important recent labor market trend is the rapid increase in the number of immigrants employed in the information technology sector who have temporary worker status. Economic theory suggests that temporary immigrant workers will be affected more adversely than native workers during a recession. This study uses OLS regression models to predict both wages and employment levels (through usual hours worked) in IT occupations as a function of immigration status, education level, age, gender, the recession and a set of interactive terms. The results from this study unexpectedly show that in the IT sector, employment of native workers fell during the recession while the employment of temporary immigrant workers rose. Also surprising is that wages of temporary immigrant workers in the IT sector do not appear to be significantly different from wages of natives in that sector even during the recession. This suggests that employers retained temporary workers and even added to their employment to maximize productivity and fill a skills gap in the IT sector, rather than realize alternative benefits of retaining native workers in long term positions.