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Immigration and Occupational Choice of Natives: the Case of Nurses in the United States

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  • Patricia Cortés
  • Jessica Pan

Abstract

We analyze the effects of foreign nurse immigration on the occupational choice of natives and the quality of native entrants into the nursing sector. Using an empirical strategy that exploits large geographical differences in the distribution of foreign nurses across US states, we find that, in response to foreign nurse immigration, fewer native nurses sit for the nursing licensure examinations in states that are historically more dependent on foreign nurses. Moreover, we find that states with larger increases in foreign nurses have fewer young natives choosing to enter nursing, with the decline offset by an increase in the supply of young natives to primary school teaching. Using data on the passing rates of native nurses in a state as a proxy for nursing quality, we find robust evidence that an increase in the flow of foreign nurses increases the passing rate of natives in more dependent states relative to less dependent states. We suggest that the increase in quality may be induced by native nurses’ response to an increase in competition or potentially consistent with the predictions of a Roy (1951) model of occupational selection where native nurses are positively selected into the nursing sector. (JEL codes: J61, J24, J44)

Suggested Citation

  • Patricia Cortés & Jessica Pan, 2015. "Immigration and Occupational Choice of Natives: the Case of Nurses in the United States," CESifo Economic Studies, CESifo Group, vol. 61(3-4), pages 797-823.
    • Handle: RePEc:oup:cesifo:v:61:y:2015:i:3-4:p:797-823.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifv007
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    References listed on IDEAS

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    1. George J. Borjas, 2009. "Immigration in High-Skill Labor Markets: The Impact of Foreign Students on the Earnings of Doctorates," NBER Chapters, in: Science and Engineering Careers in the United States: An Analysis of Markets and Employment, pages 131-161, National Bureau of Economic Research, Inc.
    2. Giovanni Peri & Chad Sparber, 2011. "Highly Educated Immigrants and Native Occupational Choice," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 385-411, July.
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    Cited by:

    1. Yoonyoung Cho & Soohyung Lee, 2021. "How to Improve Worker–Firm Matching: Evidence from a Temporary Foreign Worker Market," Korean Economic Review, Korean Economic Association, vol. 37, pages 419-454.
    2. Barone, Guglielmo & D'Ignazio, Alessio & de Blasio, Guido & Naticchioni, Paolo, 2016. "Mr. Rossi, Mr. Hu and politics. The role of immigration in shaping natives' voting behavior," Journal of Public Economics, Elsevier, vol. 136(C), pages 1-13.
    3. Carlo Devillanova, 2021. "Tolerant or segregated? Immigration and electoral outcomes in urban areas," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 495-515, April.
    4. Annamaria Nese, 2023. "Migrations in Italy and Perceptions of Ethnic Threat," Journal of International Migration and Integration, Springer, vol. 24(3), pages 939-968, September.
    5. Margit Osterloh & Bruno S. Frey, 2017. "Migration Policy: Lessons from Cooperatives," CREMA Working Paper Series 2017-04, Center for Research in Economics, Management and the Arts (CREMA).
    6. Bächli, Mirjam & Tsankova, Teodora, 2020. "Free Movement of Workers and Native Demand for Tertiary Education," Other publications TiSEM 33968781-3521-459e-86c9-f, Tilburg University, School of Economics and Management.
    7. Bachli, Mirjam & Tsankova, Teodora, 2020. "Free movement of workers and native demand for tertiary education," CAGE Online Working Paper Series 515, Competitive Advantage in the Global Economy (CAGE).
    8. Cho, Yoon Y. & Lee, Soohyung, 2021. "How to Improve Worker-Firm Matching: Evidence from a Temporary Foreign Worker Market," IZA Discussion Papers 14328, Institute of Labor Economics (IZA).
    9. Furtado, Delia & Ortega, Francesc, 2020. "Does Immigration Improve Quality of Care in Nursing Homes?," IZA Discussion Papers 13552, Institute of Labor Economics (IZA).
    10. Bächli, Mirjam & Teodora Tsankova, 2020. "Free Movement of Workers and Native Demand for Tertiary Education," Economics Working Paper Series 2019, University of St. Gallen, School of Economics and Political Science.

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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