IDEAS home Printed from https://ideas.repec.org/p/pri/indrel/368.html
   My bibliography  Save this paper

Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration

Author

Listed:
  • David Card

    (Princeton University)

Abstract

More than one million new immigrants currently enter the United States every year. In this paper I use 1990 Census data to study the effects of immigrant inflows on the local labor market opportunities of natives and older immigrants. I depart from the previous literature by classifying new immigrants, older immigrants, and natives into distinct skill groups, and focusing on skill- group-specific outcomes within cities. Recent immigrants tend to be disproportionately concentrated in the lowest skill groups, although the makeup of immigrant inflows to individual cities varies with the source countries of the immigrants. An important first question is whether the arrival of new immigrants generates offsetting mobility by natives or earlier immigrants. Using micro-level mobility flows from 1985 to 1990 I find that natives' locational decisions are virtually unaffected by inflows of new immigrants. Earlier immigrants are less likely to move to cities that are drawing new immigrants in their specific skill groups, but on net each new immigrant expands the local population of his or her particular skill group by 1. I find that immigration-induced rises in the relative fraction of the population in specific skill groups generate small reductions in the employment rates of natives and earlier immigrants in the same skill group. The estimated effects on relative wages are smaller still, and not as robust to alternative specifications. Consistent with earlier studies, I conclude that even large inflows of relatively unskilled new immigrants generate surprisingly small effects on the relative labor market performance of less-skilled natives or earlier immigrants.

Suggested Citation

  • David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers 747, Princeton University, Department of Economics, Industrial Relations Section..
  • Handle: RePEc:pri:indrel:368
    as

    Download full text from publisher

    File URL: http://dataspace.princeton.edu/jspui/handle/88435/dsp01j96020621
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Reuben Gronau, 1973. "Wage Comparisons -A Selectivity Bias," NBER Working Papers 0013, National Bureau of Economic Research, Inc.
    2. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 35-78.
    3. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    4. David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers 747, Princeton University, Department of Economics, Industrial Relations Section..
    5. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
    6. repec:fth:prinin:368 is not listed on IDEAS
    7. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-1143, Nov.-Dec..
    8. Robert J. LaLonde & Robert H. Topel, 1991. "Labor Market Adjustments to Increased Immigration," NBER Chapters,in: Immigration, Trade, and the Labor Market, pages 167-199 National Bureau of Economic Research, Inc.
    9. George J. Borjas, 1986. "Immigrants, Minorities, and Labor Market Competition," NBER Working Papers 2028, National Bureau of Economic Research, Inc.
    10. 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.
    11. Chinhui Juhn, 1992. "Decline of Male Labor Market Participation: The Role of Declining Market Opportunities," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 79-121.
    12. Leamer, E.E., 1995. "The Heckscher-Ohlin Model in Theory and Practice," Princeton Studies in International Economics 77, International Economics Section, Departement of Economics Princeton University,.
    13. Butcher, Kristin F & Card, David, 1991. "Immigration and Wages: Evidence from the 1980's," American Economic Review, American Economic Association, vol. 81(2), pages 292-296, May.
    14. George J. Borjas, 1987. "Immigrants, Minorities, and Labor Market Competition," ILR Review, Cornell University, ILR School, vol. 40(3), pages 382-392, April.
    15. Kristin Butcher & David Card, 1991. "Immigration and Wages: Evidence From the 1980's," Working Papers 661, Princeton University, Department of Economics, Industrial Relations Section..
    16. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Workforce: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1, July.
    17. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-391, October.
    18. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November.
    19. Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc.
    20. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade, and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, July.
    21. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    immigration; intercity migration; local labor markets;

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pri:indrel:368. 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: (Bobray Bordelon). General contact details of provider: http://edirc.repec.org/data/irprius.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.