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Immigrating into a recession: Evidence from family migrants to the U.S

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  • Barsbai, Toman
  • Steinmayr, Andreas
  • Winter, Christoph

Abstract

We analyze the impact of economic conditions at arrival on the economic integration of family-sponsored migrants in the U.S. A one pp higher unemployment rate at arrival decreases annual wage income by four percent in the short run and two percent in the longer run. The loss in wage income results primarily from lower hourly wages due to occupational downgrading. Migrant and family networks help mitigating the negative labor market effects. Migrants who arrive during a recession take up occupations with higher concentrations of fellow countrypeople and are more likely to reside with family members, potentially reducing their geographical mobility.

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  • Barsbai, Toman & Steinmayr, Andreas & Winter, Christoph, 2023. "Immigrating into a recession: Evidence from family migrants to the U.S," Kiel Working Papers 2240, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:2240
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    Cited by:

    1. Christian Dustmann & Hyejin Ku & Tetyana Surovtseva, 2024. "Real Exchange Rates and the Earnings of Immigrants," The Economic Journal, Royal Economic Society, vol. 134(657), pages 271-294.
    2. García-Suaza, A & Gallego, J. M. & Mayorga, J. D. & Mondragón-Mayo, A. & Sepúlveda, C. & Sarango, A., 2022. "COVID-19 and assimilation: an analysis of immigration from Venezuelan in Colombia," Documentos de Trabajo 20417, Universidad del Rosario.
    3. Schilling, Pia & Stillman, Steven, 2024. "The impact of natives’ attitudes on refugee integration," Labour Economics, Elsevier, vol. 87(C).
    4. Müller, Tobias & Pannatier, Pia & Viarengo, Martina, 2023. "Labor market integration, local conditions and inequalities: Evidence from refugees in Switzerland," World Development, Elsevier, vol. 170(C).
    5. Schilling, Pia & Stillman, Steven, 2021. "The Impact of Natives' Attitudes Towards Immigrants on Their Integration in the Host Country," IZA Discussion Papers 14728, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Immigrant integration; family reunification; chain migration; migrant networks; labor market; business cycle;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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