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Immigration and Natives' Wages: Understanding Their Correlation in the 1980s

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  • Easton, Todd

    (University of Portland)

Abstract

Major papers on immigration's wage impacts in the 1980s concluded that immigration into the U.S. modestly reduced the wages of natives. Authors based these conclusions on fixed-effects models that controlled for area-specific shocks. Without those fixed effects, however, these authors found positive correlations between immigration and wages. This study examines two specific shocks that might explain this counterintuitive result: changes in the industry structure of labor demand and differences in inflation rates among metropolitan areas. The study finds no evidence that the first shock matters for understanding immigration, but finds that a large proportion of the positive correlation between immigration and wages disappears if one controls for differences in inflation rates.

Suggested Citation

  • Easton, Todd, 2001. "Immigration and Natives' Wages: Understanding Their Correlation in the 1980s," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 219-235, Winter.
    • Handle: RePEc:rre:publsh:v:31:y:2001:i:3:p:219-235
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    References listed on IDEAS

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    Cited by:

    1. Brian Cushing & Jacques Poot, 2004. "Crossing boundaries and borders: Regional science advances in migration modelling," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 317-338, Springer.
    2. Diego Ravenda & Maika M. Valencia-Silva & Josep M. Argiles-Bosch & Josep García-Blandón, 2021. "The Effects of Immigration on Labour Tax Avoidance: An Empirical Spatial Analysis," Journal of Business Ethics, Springer, vol. 170(3), pages 471-496, May.
    3. Isil Erol & Umut Unal, 2022. "Employment effects of immigration to Germany in the period of migration policy liberalization, 2005–2018," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 531-565, September.
    4. Isil Erol & Umut Unal, 2021. "Employment Effects of Immigration to Germany in the Period of Migration Policy Liberalization, 2005–2018," MAGKS Papers on Economics 202104, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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