The Effect Of Immigration On Productivity: Evidence From U.S. States
AbstractIn this paper we analyze the long-run impact of immigration on employment, productivity, and its skill bias. We use the existence of immigrant communities across U.S. states before 1960 and the distance from the Mexican border as instruments for immigration flows. We find no evidence that immigrants crowded out employment. At the same time, we find that immigration had a strong, positive association with total factor productivity and a negative association with the high skill bias of production technologies. The results are consistent with the idea that immigrants promoted efficient task specialization, thus increasing TFP, and also promoted the adoption of unskilled-efficient technologies. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics and Statistics.
Volume (Year): 94 (2012)
Issue (Month): 1 (February)
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Web page: http://mitpress.mit.edu/journals/
Other versions of this item:
- Giovanni Peri, 2009. "The Effect of Immigration on Productivity: Evidence from US States," NBER Working Papers 15507, National Bureau of Economic Research, Inc.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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