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Diversity in Segmention. Patterns of Immigrant Competition in US Labor Markets

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  • Noe Wiener

    (Department of Economics, University of Massachusetts, Amherst)

Abstract

Competition between immigrant and native workers takes place in labor markets that are segmented along various, often unobservable dimensions. It is desirable to measure the extent to which native workers are effectively shielded from competition by immigrant workers by virtue of such patterns of segmentation. This paper proposes measures of group differences in labor market segmentation on the basis of incomplete data, such as can be obtained from the US Census. These measures are derived from a general class of models of labor competition in the Smithian tradition. The observed wage distributions of native and foreign-born workers in the United States (at the national and metropolitan level) can be approximated remarkably well with this class of model, suggesting that a parsimonious account of wage inequality is feasible.

Suggested Citation

  • Noe Wiener, 2019. "Diversity in Segmention. Patterns of Immigrant Competition in US Labor Markets," Working Papers 1901, New School for Social Research, Department of Economics.
    • Handle: RePEc:new:wpaper:1901
    as

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    File URL: http://www.economicpolicyresearch.org/econ/2019/NSSR_WP_012019.pdf
    File Function: First version, 2019
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    References listed on IDEAS

    as
    1. Noe Wiener, 2018. "Measuring Labor Market Segmentation from Incomplete Data," UMASS Amherst Economics Working Papers 2018-01, University of Massachusetts Amherst, Department of Economics.
    2. Scharfenaker, Ellis & dos Santos, Paulo L., 2015. "The distribution and regulation of Tobin’s q," Economics Letters, Elsevier, vol. 137(C), pages 191-194.
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    6. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
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    10. Markus P. A. Schneider, 2013. "Evidence for Multiple Labor Market Segments: An Entropic Analysis of US Earned Income, 1996-2007," Journal of Income Distribution, Ad libros publications inc., vol. 22(2), pages 60-98, June.
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    Cited by:

    1. Scharfenaker, Ellis, 2020. "Implications of quantal response statistical equilibrium," Journal of Economic Dynamics and Control, Elsevier, vol. 119(C).

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    More about this item

    Keywords

    Immigration; labor market competition; segmented labor markets; wage inequality; statistical equilibrium;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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