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Immigration and Labour-Market Outcomes in the United States: A Political-Economy Puzzle

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  • Gaston, Noel
  • Nelson, Douglas

Abstract

Based on a larger survey of the literature (Gaston and Nelson, 2000), this paper argues: (i) that econometric research uniformly finds very small labour-market effects of immigration; (ii) that labour and trade economists have differed in their interpretation of this finding; and (iii) that this difference is driven exclusively by different dimensionality assumptions (with labour economists preferring a 1-sector x m-factor model and trade economists an n-sector x m-factor model). It is then argued that the trade economists' model, along with its presumption of factor-price insensitivity to immigration is the more useful as a presumption generator. The paper concludes with a discussion of the political-economy implications of these results. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Gaston, Noel & Nelson, Douglas, 2000. "Immigration and Labour-Market Outcomes in the United States: A Political-Economy Puzzle," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 16(3), pages 104-114, Autumn.
    • Handle: RePEc:oup:oxford:v:16:y:2000:i:3:p:104-14
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    Citations

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    Cited by:

    1. Katarzyna Budnik, 2011. "Temporary migration in theories of international mobility of labour," Bank i Kredyt, Narodowy Bank Polski, vol. 42(6), pages 7-48.
    2. Giovanni Facchini & Anna Maria Mayda, 2006. "Individual Attitudes towards Immigrants: Welfare-State Determinants across Countries," CESifo Working Paper Series 1768, CESifo.
    3. Dustmann Christian & Preston Ian P, 2007. "Racial and Economic Factors in Attitudes to Immigration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-41, November.
    4. Leonardo Bonilla-Mejía & Leonardo Fabio Morales & Didier Hermida-Giraldo & Luz A. Flórez, 2020. "The Labor Market of Immigrants and Non-Immigrants Evidence from the Venezuelan Refugee Crisis," Borradores de Economia 1119, Banco de la Republica de Colombia.
    5. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(3), pages 478-495, Autumn.
    6. Vasil I. Yasenov, 2020. "Immigrants and the U.S. Wage Distribution," Upjohn Working Papers 20-320, W.E. Upjohn Institute for Employment Research.
    7. Hainmueller, Jens & Hiscox, Michael J. & Margalit, Yotam, 2015. "Do concerns about labor market competition shape attitudes toward immigration? New evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 193-207.
    8. David Greenaway & Douglas Nelson, 2010. "The Politics of (Anti-)Globalization: What do we Learn from Simple Models?," Chapters, in: Noel Gaston & Ahmed M. Khalid (ed.), Globalization and Economic Integration, chapter 4, Edward Elgar Publishing.
    9. Wang-Sheng Lee, 2007. "Immigration and Wages: An Open Economy Model," Melbourne Institute Working Paper Series wp2007n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    10. Courtney Brell & Christian Dustmann, 2019. "Immigration and Wage Growth: The Case of Australia," RBA Annual Conference Papers acp2019-05, Reserve Bank of Australia, revised Jul 2019.
    11. Cumming, Douglas & Li, Dan, 2013. "Public policy, entrepreneurship, and venture capital in the United States," Journal of Corporate Finance, Elsevier, vol. 23(C), pages 345-367.
    12. Frattini, T. (Tommaso), 2012. "GINI DP 44: Immigration and Inequality in Europe," GINI Discussion Papers 44, AIAS, Amsterdam Institute for Advanced Labour Studies.
    13. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).
    14. David Card & Christian Dustmann & Ian Preston, 2005. "Understanding attitudes to immigration: The migration and minority module of the first European Social Survey," RF Berlin - CReAM Discussion Paper Series 0503, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    15. Noel Gaston & Douglas R. Nelson, 2013. "Bridging Trade Theory And Labour Econometrics: The Effects Of International Migration," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 98-139, February.
    16. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    17. Chletsos, Michael & Roupakias, Stelios, 2012. "Immigration, Unemployment and Growth: Empirical Evidence from Greece," MPRA Paper 39861, University Library of Munich, Germany.
    18. Yaya, Mehmet-Erdem, 2005. "Immigration, Trade and Wages in Germany," MPRA Paper 505, University Library of Munich, Germany, revised Jun 2006.
    19. Chletsos, Michael & Roupakias, Stelios, 2012. "The impact of immigration on the greek labor market," MPRA Paper 39872, University Library of Munich, Germany.

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