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Local Adjustment to Immigrant-Driven Labor Supply Shocks

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  • Monras, Joan

Abstract

When comparing high- to low-immigrant locations, a large literature documents small effects of immigration on labor market outcomes over ten-year horizons. The literature also documents short-run negative effects of immigrant-driven labor supply shocks, at least for some groups of native workers. Taken together, those results suggests that there are mechanisms in place that help local economies recover from the short-run effects of immigrant shocks. This paper introduces a small open-city spatial equilibrium model that allows, with simple reduced form estimates of the effects of immigrant shocks on the outcomes of interest, the local adjustment to be decomposed through various channels.

Suggested Citation

  • Monras, Joan, 2019. "Local Adjustment to Immigrant-Driven Labor Supply Shocks," CEPR Discussion Papers 13998, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:13998
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    1. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
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    5. Joan Monras, 2020. "Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis," Journal of Political Economy, University of Chicago Press, vol. 128(8), pages 3017-3089.
    6. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
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    Cited by:

    1. Alexander M. Danzer & Carsten Feuerbaum & Fabian Gaessler, 2020. "Labor Supply and Automation Innovation," Working Papers 198, Bavarian Graduate Program in Economics (BGPE).
    2. Borjas, George J. & Edo, Anthony, 2021. "Gender, Selection into Employment, and the Wage Impact of Immigration," IZA Discussion Papers 14261, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    International and internal migration; Technology adoption;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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