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The impact of migration on earnings inequality

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  • Osborne Jackson

Abstract

This paper examines the impact of migration on earnings inequality using 1940?2015 data from the U.S. census and American Community Survey. Despite measurement challenges, I successfully replicate existing findings regarding national trends in earnings inequality and migration, and subsequently analyze regional and state patterns. Using 1940 birthplace information to instrument for migration, I find that recent immigration mildly increases the top decile earnings share, while recent in-migration and out-migration have no significant effects on such inequality. I estimate that immigration contributed 5.8 percent to the observed rise in U.S. earnings inequality from 1950 to 2015, primarily through a non-migrant channel.

Suggested Citation

  • Osborne Jackson, 2018. "The impact of migration on earnings inequality," Working Papers 19-5, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbwp:19-5
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    References listed on IDEAS

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    Cited by:

    1. Osborne Jackson, 2019. "The impact of migration on earnings inequality in New England," New England Public Policy Center Research Report 19-2, Federal Reserve Bank of Boston.

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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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