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Does it matter where immigrants work? Traded goods, non-traded goods, and sector specific employment

  • Bowen, Harry P.
  • Pédussel Wu, Jennifer

Immigrant employment often concentrates in non-traded goods sectors and many immigrants have low inter-sectoral mobility. We consider these observed characteristics of immigrant employment for the question of how immigration affects a nations pattern of production and trade. We model an economy producing three goods; one is non-traded. Domestic labor and capital are domestically mobile but internationally immobile. Some immigrant labor is specific to the non-traded sector. Our model indicates that the output and trade effects of immigration depend importantly on the sector and nature of immigrant employment. Empirical investigation of the models predictions indicates that trade and immigration are complements.

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Paper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 16-2004.

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Date of creation: 2004
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Handle: RePEc:zbw:zeiwps:b162004
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  1. Orrenius, Pia M. & Zavodny, Madeline, 2006. "Does Immigration Affect Wages? A Look at Occupation-Level Evidence," IZA Discussion Papers 2481, Institute for the Study of Labor (IZA).
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