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Local Adjustment to Immigrant-Driven Labor Supply Shocks

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  • Joan Monras

Abstract

When comparing high- to low-immigrant locations, a large literature documents small effects of immigration on labor market outcomes over 10-year horizons. The literature also documents short-run negative effects of immigrant-driven labor supply shocks, at least for some groups of native workers. Taken together, these results suggest that there are mechanisms in place that help local economies recover from the short-run effects of immigrant shocks. This paper introduces a small-open-city spatial equilibrium model that allows, with simple reduced-form estimates of the effects of immigrant shocks on the outcomes of interest, the local adjustment to be decomposed through various channels.

Suggested Citation

  • Joan Monras, 2021. "Local Adjustment to Immigrant-Driven Labor Supply Shocks," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 204-235.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/713148
    DOI: 10.1086/713148
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    Cited by:

    1. Danzer, Alexander M. & Feuerbaum, Carsten & Gaessler, Fabian, 2020. "Labor Supply and Automation Innovation," IZA Discussion Papers 13429, Institute of Labor Economics (IZA).
    2. Borjas, George J. & Edo, Anthony, 2021. "Gender, Selection into Employment, and the Wage Impact of Immigration," IZA Discussion Papers 14261, Institute of Labor Economics (IZA).
    3. Borjas, George J. & Breznau, Nate, 2024. "Ideological Bias in Estimates of the Impact of Immigration," IZA Discussion Papers 17561, Institute of Labor Economics (IZA).
    4. Danzer, Alexander M. & Feuerbaum, Carsten & Gaessler, Fabian, 2024. "Labor supply and automation innovation: Evidence from an allocation policy," Journal of Public Economics, Elsevier, vol. 235(C).
    5. Michal Burzynski & Giovanni Peri, 2024. "Natives Sorting and the Impact of Immigration on European Labor Markets," LISER Working Paper Series 2024-09, Luxembourg Institute of Socio-Economic Research (LISER).

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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