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Immigration and Labor Market (Mis)perceptions

Author

Listed:
  • Nicolás Ajzenman
  • Patricio Dominguez
  • Raimundo Undurraga

Abstract

Exposure to immigrants often triggers sentiments of hostility and backlash among native-born populations. Among the main concerns identified by surveys, labor market conditions typically rank at the top. We combine a two-way fixed effects model with a Bartik-type 2SLS model to causally estimate the effects of immigration on labor outcomes in Chile, where the foreign-born population almost tripled in five years. While immigration did not systematically affect employment levels, it did cause an increase in unemployment-related concerns. Our results provide a plausible hypothesis to explain the backlash against immigrants: misperception regarding the effect of immigrants on labor market conditions.

Suggested Citation

  • Nicolás Ajzenman & Patricio Dominguez & Raimundo Undurraga, 2022. "Immigration and Labor Market (Mis)perceptions," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 402-408, May.
    • Handle: RePEc:aea:apandp:v:112:y:2022:p:402-08
    DOI: 10.1257/pandp.20221004
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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