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Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration

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  • David Card

Abstract

This paper uses 1990 Census data to study the effects of immigrant inflows on the labor market opportunities of natives and older immigrants. I divide new immigrants, older immigrants, and natives into distinct skill groups and focus on skill-group-specific outcomes within cities. An important first question is" whether inflows of new immigrants lead to outflows of natives or earlier immigrants in the same skill groups. Even after accounting for endogenous mobility decisions I find that inter-city migration flows of natives and older immigrants are largely" unaffected by new immigrant inflows. Inflows of new immigrants are associated with lower employment rates among natives and earlier immigrants, but with relatively small effects on the relative wage structure. The estimates imply that immigrant arrivals between 1985 and 1990 depressed the employment rate of low-skilled natives in major U.S. cities by 1-2 percentage points on average, and by substantially more in high-immigrant cities.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5927.

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Date of creation: Feb 1997
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Publication status: published as Card, David. "Immigrant Inflows, Native Outflows, And The Local Labor Market Impacts Of Higher Immigration," Journal of Labor Economics, 2001, v19(1,Jan), 22-64.
Handle: RePEc:nbr:nberwo:5927

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  1. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November.
  2. Kristin F. Butcher & John DiNardo, 1998. "The Immigrant and Native-born Wage Distributions: Evidence from United States Censuses," NBER Working Papers 6630, National Bureau of Economic Research, Inc.
  3. Robert J. LaLonde & Robert H. Topel, 1989. "Labor Market Adjustments to Increased Immigration," University of Chicago - George G. Stigler Center for Study of Economy and State 55, Chicago - Center for Study of Economy and State.
  4. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
  5. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, octubre-d.
  6. repec:fth:prinin:368 is not listed on IDEAS
  7. George J. Borjas, 1986. "Immigrants, Minorities, and Labor Market Competition," NBER Working Papers 2028, National Bureau of Economic Research, Inc.
  8. David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
  9. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
  10. Reuben Gronau, 1973. "Wage Comparisons -A Selectivity Bias," NBER Working Papers 0013, National Bureau of Economic Research, Inc.
  11. Leamer, E.E., 1995. "The Heckscher-Ohlin Model in Theory and Practice," Princeton Studies in International Economics 77, International Economics Section, Departement of Economics Princeton University,.
  12. Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc.
  13. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Workforce: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1, octubre-d.
  14. George J. Borjas, 1987. "Immigrants, minorities, and labor market competition," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 40(3), pages 382-392, April.
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