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INTRODUCTION: The Association between Immigration and Labor Market Outcomes in the U.S

In: The Economics of International Migration

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  • G. Basso

Abstract

In this introductory chapter we present important correlations between immigration and labor market outcomes of native workers in the US. We use data on local labor markets, states and regions from the Census and American Community Survey over the period 1970–2010. We first look at simple correlations and then we use regression analysis with an increasing number of controls for observed and unobserved factors. We review the potential methods to separate the part of this correlation that captures the causal link from immigrants to native labor outcomes and we show estimates obtained with 2SLS method using the popular shift-share instrument. One fact emerging from all the specifications is that the net growth of immigrant labor has a zero to positive correlation with changes in native wages and native employment, in aggregate and by skill group. We briefly review the channels and the mechanisms that allow local economies to absorb immigrants with no negative (and possibly positive) impact on the labor demand for natives.

Suggested Citation

  • G. Basso, 2016. "INTRODUCTION: The Association between Immigration and Labor Market Outcomes in the U.S," World Scientific Book Chapters, in: The Economics of International Migration, chapter 1, pages 1-31, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814719902_0001
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    Cited by:

    1. Peri, Giovanni, 2018. "Did immigration contribute to wage stagnation of unskilled workers?," Research in Economics, Elsevier, vol. 72(2), pages 356-365.

    More about this item

    Keywords

    Migration; Immigration; Growth; Productivity; Labor Markets; Selection; Immigration Policies;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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