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Immigration and Labour-Market Outcomes in the United States: A Political-Economy Puzzle

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  • Gaston, Noel
  • Nelson, Douglas

Abstract

Based on a larger survey of the literature (Gaston and Nelson, 2000), this paper argues: (i) that econometric research uniformly finds very small labour-market effects of immigration; (ii) that labour and trade economists have differed in their interpretation of this finding; and (iii) that this difference is driven exclusively by different dimensionality assumptions (with labour economists preferring a 1-sector x m-factor model and trade economists an n-sector x m-factor model). It is then argued that the trade economists' model, along with its presumption of factor-price insensitivity to immigration is the more useful as a presumption generator. The paper concludes with a discussion of the political-economy implications of these results. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Gaston, Noel & Nelson, Douglas, 2000. "Immigration and Labour-Market Outcomes in the United States: A Political-Economy Puzzle," Oxford Review of Economic Policy, Oxford University Press, vol. 16(3), pages 104-114, Autumn.
  • Handle: RePEc:oup:oxford:v:16:y:2000:i:3:p:104-14
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    Citations

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    Cited by:

    1. Dustmann Christian & Preston Ian P, 2007. "Racial and Economic Factors in Attitudes to Immigration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-41, November.
    2. Katarzyna Budnik, 2011. "Temporary migration in theories of international mobility of labour," Bank i Kredyt, Narodowy Bank Polski, vol. 42(6), pages 7-48.
    3. Giovanni Facchini & Anna Maria Mayda, 2006. "Individual Attitudes towards Immigrants: Welfare-State Determinants Across Countries," Working Papers gueconwpa~06-06-02, Georgetown University, Department of Economics.
    4. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 478-495, Autumn.
    5. Cumming, Douglas & Li, Dan, 2013. "Public policy, entrepreneurship, and venture capital in the United States," Journal of Corporate Finance, Elsevier, vol. 23(C), pages 345-367.
    6. Frattini, T. (Tommaso), 2012. "GINI DP 44: Immigration and Inequality in Europe," GINI Discussion Papers 44, AIAS, Amsterdam Institute for Advanced Labour Studies.
    7. Bonin, Holger, 2017. "Report No. 75: The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute for the Study of Labor (IZA).
    8. David Card & Christian Dustmann & Ian Preston, 2005. "Understanding attitudes to immigration: The migration and minority module of the first European Social Survey," CReAM Discussion Paper Series 0503, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    9. Chletsos, Michael & Roupakias, Stelios, 2012. "Immigration, Unemployment and Growth: Empirical Evidence from Greece," MPRA Paper 39861, University Library of Munich, Germany.
    10. Yaya, Mehmet-Erdem, 2005. "Immigration, Trade and Wages in Germany," MPRA Paper 505, University Library of Munich, Germany, revised Jun 2006.
    11. Chletsos, Michael & Roupakias, Stelios, 2012. "The impact of immigration on the greek labor market," MPRA Paper 39872, University Library of Munich, Germany.
    12. Hainmueller, Jens & Hiscox, Michael J. & Margalit, Yotam, 2015. "Do concerns about labor market competition shape attitudes toward immigration? New evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 193-207.
    13. Chletsos, Michael & Roupakias, Stelios, 2016. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach Before and During the Great Recession," MPRA Paper 75659, University Library of Munich, Germany.
    14. David Greenaway & Douglas Nelson, 2010. "The Politics of (Anti-)Globalization: What do we Learn from Simple Models?," Chapters,in: Globalization and Economic Integration, chapter 4 Edward Elgar Publishing.
    15. Wang-Sheng Lee, 2007. "Immigration and Wages: An Open Economy Model," Melbourne Institute Working Paper Series wp2007n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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