IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Effect of Low-Skilled Immigration on U.S. Prices: Evidence from CPI Data

  • Patricia Cortes
Registered author(s):

    I exploit the large variation across U.S. cities and through time in the relative size of the low-skilled immigrant population to estimate the causal effect of immigration on prices of nontraded goods and services. Using an instrumental variables strategy, I find that, at current immigration levels, a 10 percent increase in the share of low-skilled immigrants in the labor force decreases the price of immigrant-intensive services, such as housekeeping and gardening, by 2 percent. Wage equations suggest that lower wages are a likely channel through which these effects take place. However, wage effects are significantly larger for low-skilled immigrants than for low-skilled natives, implying that the two are imperfect substitutes. (c) 2008 by The University of Chicago. All rights reserved..

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.journals.uchicago.edu/doi/pdf/10.1086/589756
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by University of Chicago Press in its journal Journal of Political Economy.

    Volume (Year): 116 (2008)
    Issue (Month): 3 (06)
    Pages: 381-422

    as
    in new window

    Handle: RePEc:ucp:jpolec:v:116:y:2008:i:3:p:381-422
    Contact details of provider: Web page: http://www.journals.uchicago.edu/JPE/

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is featured on the following reading lists or Wikipedia pages:

    1. The Effect of Low‐Skilled Immigration on U.S. Prices: Evidence from CPI Data (JPE 2008) in ReplicationWiki

    When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:116:y:2008:i:3:p:381-422. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.