Does immigration reduce wages of natives? Evidence for nurses

Abstract: Previous research has not reached any definite conclusion on whether immigration has a negative effect on the wages of natives. This paper reexamines the question by looking at the effect of immigration of foreign born nurses on the income of native nurses in Sweden. Using full population individual level data for nurses in Sweden for the period 1989-2000, we relate the share of foreign born nurses in counties to the income level of native nurses. We find no evidence of the share of foreign born nurses negatively affecting the incomes of native nurses, with estimates being either positive or statistically insignificant.