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The Impact of Immigration on the Native-born Unemployed

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  • Fernando Rios-Avila
  • Gustavo Canavire-Bacarreza

Abstract

In this policy note, Research Scholar Fernando Rios-Avila and Gustavo Canavire-Bacarreza, Universidad EAFIT, observe that immigration in the United States has a small but statistically significant impact on the labor market behavior of native-born unemployed workers. Their chances of transitioning from unemployment to employment are not affected by the share of immigrants in their job markets, but the native-born unemployed are more likely to leave the labor force when living in areas with a higher relative concentration of immigrants. Three additional results of the study shed light on what might be contributing to this higher rate of labor market exit, with each pointing to the potential role of expectations in creating a discouraged worker effect among the native-born unemployed in high-immigration states.

Suggested Citation

  • Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2016. "The Impact of Immigration on the Native-born Unemployed," Economics Policy Note Archive 16-3, Levy Economics Institute.
  • Handle: RePEc:lev:levypn:16-3
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    References listed on IDEAS

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    1. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    2. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2012. "Comment: On Estimating Elasticities Of Substition," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 198-210, February.
    3. Christopher L. Smith, 2012. "The Impact of Low-Skilled Immigration on the Youth Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 55-89.
    4. Stella M. Rouse & Betina Cutaia Wilkinson & James C. Garand, 2010. "Divided Loyalties? Understanding Variation in Latino Attitudes Toward Immigration," Social Science Quarterly, Southwestern Social Science Association, vol. 91(3), pages 856-882.
    5. Kenneth F. Scheve & Matthew J. Slaughter, 2001. "Labor Market Competition And Individual Preferences Over Immigration Policy," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 133-145, February.
    6. Paolo Lucchino & Dr Chiara Rosazza Bondibene & Jonathan Portes, 2012. "Examining the relationship between immigration and unemployment using National Insurance Number registration data," National Institute of Economic and Social Research (NIESR) Discussion Papers 386, National Institute of Economic and Social Research.
    7. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    8. Jordan Shan, 1999. "Immigration and Unemployment: New evidence from Australia and New Zealand," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(2), pages 253-260.
    9. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2016. "Unemployed, Now What? The Effect of Immigration on Unemployment Transitions of Native-born Workers in the United States," DOCUMENTOS DE TRABAJO CIEF 015013, UNIVERSIDAD EAFIT.
    10. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
    11. Asadul Islam, 2007. "Immigration Unemployment Relationship: The Evidence From Canada ," Australian Economic Papers, Wiley Blackwell, vol. 46(1), pages 52-66, March.
    12. Marco Pecoraro & Didier Ruedin, 2016. "A Foreigner Who Does Not Steal My Job: The Role of Unemployment Risk and Values in Attitudes toward Equal Opportunities," International Migration Review, Wiley Blackwell, vol. 50(3), pages 628-666, September.
    13. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, February.
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