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Author: Andrea Ariu Publisher: ISBN: Category : Emigration and immigration Languages : en Pages : 0
Book Description
In this paper, we provide new explanations for the puzzling findings in the literature that migrants do not decrease natives' wages, and that skilled immigration can actually increase them. We develop a model with regional labor markets and heterogeneous firms in which workers of different skill levels are imperfect substitutes, but for a given skill level, natives and migrants are perfect substitutes within a firm. In this setting, a skilled labor supply shock due to immigration has two consequences. First, it induces skill-intensive firms and skill-abundant regions to expand. These across-firm and across-region reallocations reduce the within-firm and within-region substitution between skilled and unskilled workers, thus limiting relative wage adjustments. Second, the average native's wage can be partially sheltered from the negative effect of immigration depending on the geographical settlement patterns of immigrants. Both mechanisms make natives and migrants appear as imperfect substitutes at the aggregate level. Quantitatively, our simulations show that the negative impact of immigration on natives' wage is halved when the across-firm and across-region reallocation mechanisms are at work. Finally, both theory and simulations show that when these mechanisms are coupled with human-capital externalities that are skill-neutral at the firm level but skill-biased on aggregate, skilled immigration can increase absolute and relative skilled wages. Therefore, firm heterogeneity, local labor markets, and human-capital externalities are crucial for understanding the impact of immigration on natives' wages.
Author: Andrea Ariu Publisher: ISBN: Category : Emigration and immigration Languages : en Pages : 0
Book Description
In this paper, we provide new explanations for the puzzling findings in the literature that migrants do not decrease natives' wages, and that skilled immigration can actually increase them. We develop a model with regional labor markets and heterogeneous firms in which workers of different skill levels are imperfect substitutes, but for a given skill level, natives and migrants are perfect substitutes within a firm. In this setting, a skilled labor supply shock due to immigration has two consequences. First, it induces skill-intensive firms and skill-abundant regions to expand. These across-firm and across-region reallocations reduce the within-firm and within-region substitution between skilled and unskilled workers, thus limiting relative wage adjustments. Second, the average native's wage can be partially sheltered from the negative effect of immigration depending on the geographical settlement patterns of immigrants. Both mechanisms make natives and migrants appear as imperfect substitutes at the aggregate level. Quantitatively, our simulations show that the negative impact of immigration on natives' wage is halved when the across-firm and across-region reallocation mechanisms are at work. Finally, both theory and simulations show that when these mechanisms are coupled with human-capital externalities that are skill-neutral at the firm level but skill-biased on aggregate, skilled immigration can increase absolute and relative skilled wages. Therefore, firm heterogeneity, local labor markets, and human-capital externalities are crucial for understanding the impact of immigration on natives' wages.
Author: Alan de Brauw Publisher: ISBN: Category : Languages : en Pages : 43
Book Description
The debate over the wage effects of immigration for native workers is an old one. One side of the debate claims that immigration has little if any negative impact on wages among natives, whereas others suggest that immigration has large, negative effects on native wages. On the latter side of the debate, many point to the work of Borjas (2003) who takes a national view of the US economy and estimates a wage elasticity of -0.4 with respect to immigration. In this paper, we replicate and update Borjas with the 2010 US census data, and use the method to study an even larger, concurrent labor supply shock, namely the entry of women into the labor force. We both find a much lower wage elasticity than Borjas to immigration (-0.2), and estimate a positive, statistically significant relationship between men's wages and women's entry into education-experience cells when wages are annualized. We take this evidence to suggest that the Borjas model is mis-specified as it inadequately specifies substitution between immigrants and natives, and inadequately controls for structural change in the US economy.
Author: George J. Borjas Publisher: ISBN: Category : Foreign workers Languages : en Pages : 54
Book Description
Immigration is not evenly balanced across groups of workers that have the same education but differ in their work experience, and the nature of the supply imbalance changes over time. This paper develops a new approach for estimating the labor market impact of immigration by exploiting this variation in supply shifts across education-experience groups. I assume that similarly educated workers with different levels of experience participate in a national labor market and are not perfect substitutes. The analysis indicates that immigration lowers the wage of competing workers: a 10 percent increase in supply reduces wages by 3 to 4 percent
Author: National Academies of Sciences, Engineering, and Medicine Publisher: National Academies Press ISBN: 0309444454 Category : Social Science Languages : en Pages : 643
Book Description
The Economic and Fiscal Consequences of Immigration finds that the long-term impact of immigration on the wages and employment of native-born workers overall is very small, and that any negative impacts are most likely to be found for prior immigrants or native-born high school dropouts. First-generation immigrants are more costly to governments than are the native-born, but the second generation are among the strongest fiscal and economic contributors in the U.S. This report concludes that immigration has an overall positive impact on long-run economic growth in the U.S. More than 40 million people living in the United States were born in other countries, and almost an equal number have at least one foreign-born parent. Together, the first generation (foreign-born) and second generation (children of the foreign-born) comprise almost one in four Americans. It comes as little surprise, then, that many U.S. residents view immigration as a major policy issue facing the nation. Not only does immigration affect the environment in which everyone lives, learns, and works, but it also interacts with nearly every policy area of concern, from jobs and the economy, education, and health care, to federal, state, and local government budgets. The changing patterns of immigration and the evolving consequences for American society, institutions, and the economy continue to fuel public policy debate that plays out at the national, state, and local levels. The Economic and Fiscal Consequences of Immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the United States, a major destination of world population movements. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the general public, nongovernmental organizations, the business community, educational institutions, and the research community.
Author: Alan de Brauw Publisher: ISBN: Category : Languages : en Pages : 40
Book Description
The debate over the wage effects of immigration for native workers is an old one. One side of the debate claims that immigration has little if any negative impact on wages among natives, whereas others suggest that immigration has large, negative effects on native wages. On the latter side of the debate, many point to the work of Borjas (2003), who takes a national view of the US economy and estimates a wage elasticity of -0.4 with respect to immigration. In this paper, we replicate and update Borjas with the 2010 US census data, and use the method to study an even larger, concurrent labor supply shock, namely the entry of women into the labor force. We both find a much lower wage elasticity than Borjas to immigration (-0.2) and estimate a positive, statistically significant relationship between men's wages and women's entry into education-experience cells when wages are annualized. We take this evidence to suggest that the Borjas model is misspecified as it inadequately specifies substitution between immigrants and natives, and inadequately controls for structural change in the US economy.
Author: John M. Abowd Publisher: University of Chicago Press ISBN: 0226000966 Category : Political Science Languages : en Pages : 446
Book Description
Are immigrants squeezing Americans out of the work force? Or is competition wth foreign products imported by the United States an even greater danger to those employed in some industries? How do wages and unions fare in foreign-owned firms? And are the media's claims about the number of illegal immigrants misleading? Prompted by the growing internationalization of the U.S. labor market since the 1970s, contributors to Immigration, Trade, and the Labor Market provide an innovative and comprehensive analysis of the labor market impact of the international movements of people, goods, and capital. Their provocative findings are brought into perspective by studies of two other major immigrant-recipient countries, Canada and Australia. The differing experiences of each nation stress the degree to which labor market institutions and economic policies can condition the effect of immigration and trade on economic outcomes Contributors trace the flow of immigrants by comparing the labor market and migration behavior of individual immigrants, explore the effects of immigration on wages and employment by comparing the composition of the work force in local labor markets, and analyze the impact of trade on labor markets in different industries. A unique data set was developed especially for this study—ranging from an effort to link exports/imports with wages and employment in manufacturing industries, to a survey of illegal Mexican immigrants in the San Diego area—which will prove enormously valuable for future research.
Author: Örn B. Bodvarsson Publisher: Springer Science & Business Media ISBN: 3540777962 Category : Business & Economics Languages : en Pages : 434
Book Description
The inspiration for this book came from a collaborative research project on immigration, begun in 2001, when we were colleagues at University of Nebraska- Lincoln (Bodvarsson was a Visiting Professor there in 2001–05). Our project dealt with the application of Say’s Law to the supply of immigrant labor, meaning that when the supply of immigrant labor grows in an area, the new immigrants, being consumers, bolster labor demand and help to offset the lower wages they may bring about. Our test case was the seemingly obscure Dawson County, Nebraska, where the meatpacking industry experienced a relatively huge increase in Hispanic-born labor supply around 1990. We found for Dawson County this ‘‘demand effect’’ to be signi?cant and our results for this test case generalizable to other, more prominent, test cases. This inspired us to study the famous Mariel Boatlift, where Miami’s labor force grew suddenly by 7% due to the arrival of nearly 125,000 Cuban refugees in the spring of 1980. In that study, we showed that the Marielitos exerted a signi?cant demand effect, which we argue helps to account for the stylized fact that the Mariel in?ux had a relatively benign effect on the Miami labor market. We had the privilege of presenting both studies at various conferences in the USA, Norway, Taiwan and Israel, and these studies have been published in Labour Economics and the Research in Labor Economics series (both studies are discussed in detail in this book).
Author: Christopher L. Smith Publisher: DIANE Publishing ISBN: 1437930964 Category : Social Science Languages : en Pages : 43
Book Description
This is a print on demand edition of a hard to find publication. The employment-to-population rate of high-school aged youth has fallen by about 20 percentage points since the late 1980s. Growth in the number of less-educated immigrants reduced youth employment rates. Previous research had identified a modest negative relationship between immigration levels and adult labor market outcomes. Two factors are at work: there is greater overlap between the jobs that youth and less-educated adult immigrants do, and youth labor supply is more responsive to immigration-induced changes in their wage. Reduced employ. rates are not associated with higher earnings 10 years later in life. There is a possibility that an immigration-induced reduction in youth employment hinders youths' human capital accumulation.
Author: George J. Borjas Publisher: University of Chicago Press ISBN: 0226066703 Category : Political Science Languages : en Pages : 294
Book Description
Since the 1970s, the striking increase in immigration to the United States has been accompanied by a marked change in the composition of the immigrant community, with a much higher percentage of foreign-born workers coming from Latin America and Asia and a dramatically lower percentage from Europe. This timely study is unique in presenting new data sets on the labor force, wage rates, and demographic conditions of both the U.S. and source-area economies through the 1980s. The contributors analyze the economic effects of immigration on the United States and selected source areas, with a focus on Puerto Rico and El Salvador. They examine the education and job performance of foreign-born workers; assimilation, fertility, and wage rates; and the impact of remittances by immigrants to family members on the overall gross domestic product of source areas. A revealing and original examination of a topic of growing importance, this book will stand as a guide for further research on immigration and on the economies of developing countries.
Author: Andrea Ariu
Author: Andrea Ariu
Author: Alan de Brauw
Author: George J. Borjas
Author: National Academies of Sciences, Engineering, and Medicine
Author: Alan de Brauw
Author: John M. Abowd
Author: Örn B. Bodvarsson
Author: Christopher L. Smith
Author: George J. Borjas
Author: Michael E. Hurst