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Native Competition and Low-Skilled Immigrant Inflows

Listed author(s):
  • Brian C. Cadena

This paper demonstrates that immigration decisions depend on local labor market conditions by documenting the change in low-skilled immigrant inflows in response to supply increases among the US-born. Using prereform welfare participation rates as an instrument for changes in native labor supply, I find that immigrants competing with native entrants systematically prefer cities with smaller supply shocks. The extent of the response is substantial: for each native woman working due to reform, 0.5 fewer female immigrants enter the local labor force. These results provide direct evidence that international migration flows tend to equilibrate returns across US local labor markets.

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File URL: http://jhr.uwpress.org/cgi/reprint/48/4/910
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 48 (2013)
Issue (Month): 4 ()
Pages: 910-944

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Handle: RePEc:uwp:jhriss:v:48:y:2013:iv:1:p:910-944
Contact details of provider: Web page: http://jhr.uwpress.org/

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  1. David T. Ellwood, 2000. "Anti-Poverty Policy for Families in the Next Century: From Welfare to Work--and Worries," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 187-198, Winter.
  2. Cadena, Brian C., 2014. "Recent immigrants as labor market arbitrageurs: Evidence from the minimum wage," Journal of Urban Economics, Elsevier, vol. 80(C), pages 1-12.
  3. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April.
  4. Jeffrey Grogger & Steven J. Haider & Jacob Klerman, 2003. "Why Did the Welfare Rolls Fall During the 1990's? The Importance of Entry," American Economic Review, American Economic Association, vol. 93(2), pages 288-292, May.
  5. Neeraj Kaushal, 2005. "New Immigrants' Location Choices: Magnets without Welfare," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 59-80, January.
  6. Jordan D. Matsudaira & Rebecca M. Blank, 2014. "The Impact of Earnings Disregards on the Behavior of LowÔÇÉIncome Families," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(1), pages 7-35, 01.
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