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Effect of immigrant nurses on labor market outcomes of US nurses

  • Kaestner, Robert
  • Kaushal, Neeraj

We study the effect of immigration of foreign-trained, registered nurses (RNs) on the employment and wages of US-trained RNs. We use the “area” approach and study effects of immigration in labor markets defined by the state. We find substantial evidence that immigration by foreign-trained nurses increases the supply of nurses and that this increase in supply is associated with a decrease in annual earnings. Estimates suggest that a 10% increase in supply due to immigration is associated with a 1–4% decrease in annual earnings, although most estimates were not statistically significant and we did not find a similar association between an increase in supply and wages.

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File URL: http://www.sciencedirect.com/science/article/pii/S0094119011000763
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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 71 (2012)
Issue (Month): 2 ()
Pages: 219-229

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Handle: RePEc:eee:juecon:v:71:y:2012:i:2:p:219-229
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  1. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  2. Gordon H. Hanson, 2007. "Emigration, remittances and labor force participation in Mexico," INTAL Working Papers 1456, Inter-American Development Bank, INTAL.
  3. Giovanni Peri & Chad Sparber, 2008. "Task Specialization, Immigration, and Wages," CReAM Discussion Paper Series 0802, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers 747, Princeton University, Department of Economics, Industrial Relations Section..
  5. George J. Borjas & Lawrence F. Katz, 2007. "The Evolution of the Mexican-Born Workforce in the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 13-56 National Bureau of Economic Research, Inc.
  6. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
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  8. David Card, 2005. "Is the New Immigration Really so Bad?," Economic Journal, Royal Economic Society, vol. 115(507), pages F300-F323, November.
  9. Hirsch, Barry T. & Schumacher, Edward J., 1995. "Monopsony power and relative wages in the labor market for nurses," Journal of Health Economics, Elsevier, vol. 14(4), pages 443-476, October.
  10. David Card, 2009. "Immigration and Inequality," NBER Working Papers 14683, National Bureau of Economic Research, Inc.
  11. James W. Hardin & Henrik Schmeidiche & Raymond J. Carroll, 2003. "The regression-calibration method for fitting generalized linear models with additive measurement error," Stata Journal, StataCorp LP, vol. 3(4), pages 361-372, December.
  12. Hirsch, Barry T. & Schumacher, Edward J., 2005. "Classic or new monopsony? Searching for evidence in nursing labor markets," Journal of Health Economics, Elsevier, vol. 24(5), pages 969-989, September.
  13. James W. Hardin & Henrik Schmeidiche & Raymond J. Carroll, 2003. "The regression-calibration method for fitting generalized linear models with additive measurement error," Stata Journal, StataCorp LP, vol. 3(4), pages 373-385, December.
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