We study potential economic benefits of immigration stemming from two factors: first, that immigrants bring not only their labor supply with them, but also their consumption demands; and second, that immigrants may have a comparative advantage in the production of ethnic goods. Using data on the universe of business establishments located in California between 1992 and 2002 matched with Census of Population data, we find some evidence that immigrant inflows boost employment in the retail sector, which is non-traded and a non-intensive user of immigrant labor. We find that immigration is associated with fewer stand-alone retail stores, and a greater number of large and in particular big-box retailers – evidence that likely contradicts a diversity-enhancing effect of immigration. On the other hand, focusing more sharply on the restaurant sector, for which we can better identify the types of products consumed by customers, the evidence indicates that immigration is associated with increased ethnic diversity of restaurants.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
14900.
Length: Date of creation: Apr 2009 Date of revision: Handle: RePEc:nbr:nberwo:14900
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Find related papers by JEL classification: J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy J2 - Labor and Demographic Economics - - Demand and Supply of Labor J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Edward P. Lazear, 2000.
"Diversity and Immigration,"
NBER Chapters,
in: Issues in the Economics of Immigration, pages 117-142
National Bureau of Economic Research, Inc.
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