the effect of immigration along the distribution of wages this paper analyses the effect immigration has on wages of native workers unlike most previous work we estimate wage effects along the distribution of wages we derive a flexible empirical strategy that does not rely on pre allocating immigrants to particular skill groups in our empirical analysis we demonstrate that immigrants downgrade considerably upon arrival as for the effects on native wages we find that immigration depresses wages below the 20th percentile of the wage distribution but leads to slight wage increases in the upper part of the wage distribution the overall wage effect of immigration is slightly positive the positive wage effects we find are although modest too large to be explained by an immigration surplus we suggest alternative explanations based on the idea that immigrants are paid less than the value of what they contribute to production generating therefore a surplus and we assess the magnitude of these effects

do international students crowd out or cross subsidize americans in higher education abstract recent growth in international enrollment at u s universities has raised controversy while critics accuse international students of displacing american students university administrators have argued that they provide much needed tuition revenue this paper examines how international students impact domestic enrollment focusing on a unique boom and bust in international matriculation into u s graduate programs from 1995 to 2005 overall foreign students appear to increase domestic enrollment this positive effect is linked to cross subsidization whereby high net tuition payments from foreign students help subsidize the cost of enrolling additional domestic students

immigration and prices this paper examines the behavior of prices following the unexpected arrival of a large number of immigrants from the former soviet union fsu to israel during 1990 i use store level price data on 915 consumer price index products to show that the increase in aggregate demand prompted by the arrival of the fsu immigration significantly reduced prices during 1990 when one controls for native population size and city and month effects a one percentage point increase in the ratio of immigrants to natives in a city decreases prices by 0 5 percentage point on average it is argued that this negative immigration effect is consistent with fsu immigrants the new consumers having higher price elasticities and lower search costs than the native population thus immigration can have a moderating effect on inflation through its direct effect on product markets and not only by increasing the supply of labor

skilled immigration and innovation evidence from enrolment fluctuations in us doctoral programmes we study the contribution of foreign science and engineering talent to the creation of new knowledge in the u s economy using panel data on 2300 science and engineering s e departments at 100 large american universities from 1973 to 1998 we use macroeconomic shocks and policy changes in source countries that differentially affect enrollments across fields and universities to isolate exogenous variation in the supply of students at specific departments both foreign and domestic graduate students are central inputs into knowledge creation and the marginal foreign student contributes more to the production of scientific publications and citations a 10 decrease in the foreign share of doctoral students lowers s e research output at u s universities by 5 6 a theoretical model of university admissions and scholarships helps us infer the productivity effects of student quality and econometric results indicate that any visa restrictions limiting entry of highquality foreign students is most costly for u s innovation increased diversity appears to be the primary mechanism by which foreign students improve research outcomes the impact of more restrictive immigration policies depends on how they affect the quality margin and diversity of incoming foreigners

the impact of low skilled immigration on the youth labor market the employment to population rate of high school aged youth has fallen by about 20 percentage points since the late 1980s one potential explanation is increased competition from substitutable labor such as immigrants i demonstrate that the increase in the population of less educated immigrants has had a considerably more negative effect on employment outcomes for native youth than for native adults at least two factors are at work there is greater overlap between the jobs that youth and less educated adult immigrants traditionally do and youth labor supply appears more responsive to immigration induced wage changes

skilled immigration and the employment structures of u s firms we study the impact of skilled immigrants on the employment structures of us firms using matched employer employee data unlike most previous work we use the firm as the lens of analysis to account for greater heterogeneity and the fact that many skilled immigrant admissions are driven by firms themselves e g the h 1b visa ols and iv specifications show rising overall employment of skilled workers with increased skilled immigrant employment by the firm employment expansion is greater for young natives than for their older counterparts the departure rates for older workers relative to younger workers appear highest for those in stem occupations

the effect of emigration from poland on polish wages in this paper we analyse the effect of emigration from poland on polish wages focusing on the 1998 2007 period for poland we use a unique dataset that contains information about household members who are currently living abroad which allows us to develop region specific emigration rates and to estimate the effect of emigration on wages using within region variation our findings show that emigration led to a slight increase in wages for high and medium skilled workers which are the two groups with the largest relative outmigration rates workers at the low end of the skill distribution might have experienced wage decreases

do immigrants affect firm specific wages we propose and test a novel effect of immigration on wages existing studies have focused on the wage effects that result from changes in the aggregate labour supply in a competitive labour market we argue that if labour markets are not fully competitive immigrants might also affect wage formation at the most disaggregate level the workplace using linked employer employee data we find that an increased use of low skilled immigrant workers has a significantly negative effect on the wages of native workers at the workplace also when controlling for potential endogeneity of the immigrant share using both fixed effects and instrumental variables

cooperation punishment and immigration abstract we study the incentive to cooperate in a society comprised of citizens and immigrants the level of cooperation is governed by a steady state under population dynamics along with the behavior of individual citizens and immigrants we provide an equilibrium characterization exhibiting a uniquely determined positive level of cooperation in society we then use this framework to study the impact of government programs aimed at punishing immigrants who defect when agents produce offspring we show that a consequence of such punishment is that while the incentive for immigrants to defect decreases there is an equilibrium substitution effect whereby citizens realize an increased incentive to defect

immigration and housing rents in american cities is there a local economic impact of immigration immigration pushes up rents and housing values in us destination cities the positive association of rent growth and immigrant inflows is pervasive in time series for all metropolitan areas i use instrumental variables based on a shift share of national levels of immigration into metropolitan areas an immigration inflow equal to 1 of a city s population is associated with increases in average rents and housing values of about 1 the results suggest an economic impact that is an order of magnitude bigger than that found in labor markets

do interest groups affect us immigration policy while anecdotal evidence suggests that interest groups play a key role in shaping immigration policy there is no systematic empirical analysis of this issue in this paper we construct an industry level dataset for the united states by combining information on the number of temporary work visas with data on lobbying activity associated with immigration we find robust evidence that both pro and anti immigration interest groups play a statistically significant and economically relevant role in shaping migration policy across sectors barriers to migration are lower in sectors in which business interest groups incur larger lobbying expenditures and higher in sectors where labor unions are more important

low skilled immigration and parenting investments of college educated mothers in the united states evidence from time use data this paper uses several decades of u s time diary surveys to assess the impact of low skilled immigration through lower prices for commercial childcare on parental time investments using an instrumental variables approach that accounts for the endogenous location of immigrants we find that low skilled immigration to the united states has contributed to substantial reductions in the time allocated to basic childcare by college educated mothers of nonschool aged children however these mothers have not reduced the time allocated to more stimulating educational and recreational activities with their children understanding the factors driving parental time investments on children is crucial from a child development perspective

bridging trade theory and labour econometrics the effects of international migration this paper surveys current theoretical and empirical research on international migration with a particular emphasis on the links between trade theory and labour empirics

migration unemployment and skill downgrading in this paper we analyze the labor market impacts of immigration under flexible and rigid labor market regimes a general equilibrium framework is developed accounting for skill heterogeneity and labor market frictions where unemployed medium skilled manufacturing workers are downgraded into low skilled service jobs while low skilled service workers might end up unemployed the analytical analysis shows that medium skill immigration decreases low skilled unemployment under the flexible regime indicating a complementarity effect while the rigid regime induces a substitution effect leading to low skilled unemployment moreover it leads to wage polarization in a numerical analysis the economic effects of different migration scenarios are quantified

do immigrant inflows lead to native outflows we use 1980 and 1990 census data for 119 larger metropolitan statistical areas to examine the effect of skill group specific immigrant inflows on the location decisions of natives in the same skill group and on the overall distribution of human capital to control for unobserved skill group specific demand factors our models include lagged mobility flows of natives over the 1970 80 period we also estimate instrumental variables models that use the fraction of mexican immigrants in 1970 to predict skill group specific relative immigrant inflows over the 1980s despite wide variation across cities in the size and relative skill composition of immigrant population changes we find no evidence of selective out migration by natives we conclude that immigrant inflows exert a direct effect on the relative skill composition of cities cities that have received relatively unskilled immigrant flows have experienced proportional rises in the size of their unskilled populations this abstract was borrowed from another version of this item

immigration and international prices abstract this paper considers the relation between immigration and prices in a number of countries across the world over the period from 1990 to 2006 immigration is shown to have a negative impact on international relative prices a 10 increase in the share of immigrant workers in total employment decreases the prices of final products by as much as 3 our results suggest that the tendency of this factor of production to relocate to relatively expensive high wage countries exerts downward pressure on prices of tradeables and non tradeables there relative to other locations the effect of immigration on prices is more evident for goods consumed by immigrants as compared to goods produced by immigrants

modelling the effects of immigration on regional economic performance and wage distribution a computable general equilibrium cge analysis of three european union regions pouliakas k roberts d balamou e and psaltopoulos d modelling the effects of immigration on regional economic performance and wage distribution a computable general equilibrium cge analysis of three european union regions regional studies the paper uses a regional computable general equilibrium cge model to analyse the effects of immigration on three small remote european union regions located within scotland uk greece and latvia two migration scenarios are assessed in the first total labour supply is affected in the second the importance of migratory flows by differential labour skill types is investigated the results indicate significant differences in the extent to which regional economies are affected by immigration they also suggest that remote regions are highly vulnerable to the out migration of skilled workers brain drain while the in migration of unskilled workers leads to widening wage inequality

native internal migration and the labor market impact of immigration this paper presents a theoretical and empirical study of how immigration influences the joint determination of the wage structure and internal migration behavior for native born workers in local labor markets using data from the 1960 2000 decennial censuses the study shows that immigration is associated with lower in migration rates higher out migration rates and a decline in the growth rate of the native workforce the native migration response attenuates the measured impact of immigration on wages in a local labor market by 40 to 60 per cent depending on whether the labor market is defined at the state or metropolitan area level

remittances and the wage impact of immigration this paper examines how the outflow of remittances affect the wages of native workers the model shows that the wage impact of immigration depends on the competing effects of an increase in labor market competition and an increase in the consumer base immigrant remittances provide a unique way of isolating this latter effect because they reduce the consumer base but not the workforce the predictions of the model are tested using an unusually rich german data set that has detailed information on remittances and wages as expected the results indicate that a 1 percent increase in remittances depress the wages of native workers by 0 06 percent furthermore remittances predominantly affect workers in nontraded industries that are more reliant on domestic consumption

the roles of jurisdictional competition and of collective choice institutions in the market for local public goods having discovered and neatly portrayed the conditions for efficient provision of public goods paul samuelson concluded that there was no viable mechanism for eliciting the information about preferences required to determine optimal public goods supply much subsequent theorizing about public finance decisions may be viewed as a quest for some demand revealing mechanism which would refute samuelson s assertion charles tiebout in particular countered with the claim that a viable mechanism did exist for determining the optimal supply of local public goods in his view selfinterested individuals reveal their preferences for local public goods by their choice of jurisdiction tiebout reasoned that each individual adopts from the menu of local fiscal environments that local community which most closely reflects his preferences he further argued that the greater the number and variety of communities the more efficient would the public goods provision be without empirical support this ingenious idea lay dormant for several years the question remained as to whether the mechanism described by tiebout even if it existed operated so that local jurisdictions effectively elicited and satisfied preferences for local public goods fundamental to answering this question was the necessity of designing an experiment which would reveal the result of voting with one s feet no such experiment existed until wallace oates 1969 reasoned that operation of the tiebout mechanism would result in the capitalization of differentials in fiscal variables into property values his test findings indicated that indeed such capitalization was evident at first the results obtained by others who repeated and extended his experiment were generally consistent with his findings and hence his interpretation of the link between the tiebout mechanism and the capitalization of fiscal variables it was not long however before an alternative interpretation was suggested by matthew edel and elliot sclar who argued that in the long run the tiebout mechanism would result in no capitalization of differentials in taxes and public service levels their interpretation was precisely the opposite of that offered by oates and their empirical work which indicated little evidence of capitalization supported their interpretation in retrospect conflicting interpretations of the tiebout hypothesis were almost inevitable given the absence of a formal model embodying the tiebout mechanism in an earlier paper with michael visscher we argue that tiebout s hypothesis is as follows if individuals are able to choose from among a multiplicity of local jurisdictions the result will be a pareto efficient provision of local public goods we present two alternative models which differ in the technology for production of local public goods one embodies the efficiency properties claimed by tiebout the other does not using these models we demonstrate that 1 tax capitalization cannot be tested by the procedure proposed by oates because the tax capitalization parameter is not econometrically identified a possible reason for the contradictory empirical findings of oates and of edel and sclar and 2 a test of capitali associate professor carnegie mellon university and assistant professor tulane university respectively

low skilled immigration and work fertility tradeoffs among high skilled us natives fertility and labor force participation are simultaneous outcomes of a single time allocation decision empirical work by economists has largely focused on identifying a causal effect of childbearing on employment using a variety of mechanisms to provide variation in fertility that is exogenous to other determinants of family and work decisions however a parallel demographic literature is devoted to understanding the extent and determinants of the tradeoff or role incompatibility that women face in their allocation of time between working and parenting karin l brewster and ronald r rindfuss 2000 the most often used measure of role incompatibility is the correlation between fertility and female labor force participation flfp cross country research focuses on the substantial differences in family policies child care availability unemployment rates stability of labor contracts and gender norms that may result in international differences in the correlation between childbearing and work brewster and rindfuss 2000 alicia adsera 2004 although numerous studies continue to document a negative individual level relationship between childbearing and flfp the within country correlation between the two has weakened substantially in the past 50 years especially in the united states henriette engelhardt tomas kogel and alexia prskawetz 2004 we argue that a partial explanation for this phenomenon is the steady stream of low skilled immigration which increased the affordability of child rearing for high skilled us natives we start by writing a statistical model that allows the fertility flfp correlation a macro concept to be interpreted in terms of individual fertility and work decisions we then examine variation across us metropolitan areas over time to assess the degree to which low skilled mostly hispanic immigrant inflows attenuated the negative correlation between childbearing and flfp among college educated non hispanic natives this differentiation by skill and ethnicity allows us to draw on a commonly used instrumental variables approach to isolate a causal channel of influence of immigrants on the outcomes of natives via the cost of local household services finally we describe how our estimates of the effect of low skilled immigration on the correlation coefficient can be used to calculate concrete impacts on joint childbearing and labor force participation outcomes

not just a work permit eu citizenship and the consumption behavior of documented and undocumented immigrants this paper explores the impact of the 2007 european union enlargement on the consumption behavior of immigrant households using data from a unique italian survey and a difference in differences approach we find that the enlargement induced a significant consumption increase for the immigrant households from new member states both in the short and in the medium run this enlargement effect cannot be attributed to the mere legalization as it concerns both undocumented and documented immigrants albeit through different channels detailed information on immigrants legal status undocumented documented and sector of employment informal formal allows us to shed light on the exact mechanisms following the enlargement previously undocumented immigrants experienced an increase in the labor income by moving from the informal towards the formal economy whereas immigrants who were already working legally in italy benefitted from the increased probability of getting a permanent contract enhanced employment stability in turn reduced the uncertainty about future labor income leading to an increase in documented immigrants consumption expenditure

crime in europe and the united states dissecting the reversal of misfortunes contrary to common perceptions today both property and violent crimes with the exception of homicides are more widespread in europe than in the united states while the opposite was true thirty years ago we label this fact as the reversal of misfortunes we investigate what accounts for the reversal by studying the causal impact of demographic changes incarceration abortion unemployment and immigration on crime for this we use time series data 1970 2008 from seven european countries and the united states we find that the demographic structure of the population and the incarceration rate are important determinants of crime our results suggest that a tougher incarceration policy may be an effective way to contrast crime in europe our analysis does not provide information on how incarceration policy should be made tougher nor does it provide an answer to the question whether such a policy would also be efficient from a cost benefit point of view we leave this to future research paolo buonanno francesco drago roberto galbiati and giulio zanella

the effect of migration on wages evidence from a natural experiment the objective of this paper is to employ the hurricane katrina evacuation into houston tx as a natural experiment to estimate the effect of large scale in migration on regional earnings given the characteristics of the evacuees their influx would have caused the supply of applicants for lower skilled jobs to increase proportionately more than for higher skilled jobs we utilize a differences in differences in differences methodology in which we compare differences in average earnings in the low skill non traded goods industries to the corresponding differences in the set of high skill industries in the houston and dallas fort worth msas before and after the katrina induced migration unlike previous studies we include a measure of the post storm increase in demand for local goods and services on the demand for labor we find evidence that the relative average payroll in the low skill non tradable goods industries in houston decreased by 7 when compared to the relative change for the same group of industries in dallas our findings also suggest that failure to account for demand side influences following the migration results in significant under estimation of wage effects due to the shift in labor supply

the effect of low skilled immigration on u s prices evidence from cpi data i exploit the large variation across u s cities and through time in the relative size of the low skilled immigrant population to estimate the causal effect of immigration on prices of nontraded goods and services using an instrumental variables strategy i find that at current immigration levels a 10 percent increase in the share of low skilled immigrants in the labor force decreases the price of immigrant intensive services such as housekeeping and gardening by 2 percent wage equations suggest that lower wages are a likely channel through which these effects take place however wage effects are significantly larger for low skilled immigrants than for low skilled natives implying that the two are imperfect substitutes

putting tasks to the test human capital job tasks and wages using original representative survey data we document that analytical routine and manual job tasks can be measured with high validity vary substantially within and between occupations are significantly related to workers characteristics and are robustly predictive of wage differences between occupations and among workers in the same occupation we offer a conceptual framework that makes explicit the causal links between human capital endowments occupational assignment job tasks and wages which motivate a roy model of the allocation of workers to occupations we offer two simple tests of the model s gross predictions for the relationship between tasks and wages both of which receive qualified empirical support

why has regional income convergence in the u s declined the past thirty years have seen a dramatic decrease in the rate of income convergence across states and in population flows to wealthy places these changes coincide with 1 an increase in housing prices in productive areas 2 a divergence in the skill specific real returns to living in productive places 3 a redirection of low skilled migration and 4 diminished human capital convergence due to migration we develop a model where falling housing supply elasticity and endogenous labor mobility generates these patterns using a new panel measure of housing supply regulations we demonstrate the importance of this channel income convergence continues in less regulated places while it has stopped in more regulated places

room in the kitchen for the melting pot immigration and rental prices this paper studies the response of housing markets to immigration shocks following card 1990 i examine the changes in rental prices in miami and three comparison groups after the mariel boatlift this exogenous immigration shock added an extra 9 to miami s renter population in 1980 i find that rents increased from 8 to 11 more in miami than in the comparison groups between 1979 and 1981 by 1983 the rent differential was still 7 rental units of higher quality were not affected by the immigration shock units occupied by low income hispanic residents in 1979 experienced an extra 8 differential hike with respect to other low income units relative housing prices moved in the opposite direction from rents in the short run

searching for the effect of immigration on the labor market we compare two approaches to analyzing the effects of immigration on the labor market and find that the estimated effect of immigration on u s native labor outcomes depends critically on the empirical experiment used area analyses contrast the level or change in immigration by area with the level or change in the outcomes of non immigrant workers factor proportions analyses treat immigrants as a source of increased national supply of workers of the relevant skill the different effects of immigration on native outcomes in the area and factor proportions methodologies appear to result from the diluting effect of native migration flows across regions and failure to take adequate account of other regional labor market conditions in area comparisons excerpt

offshoring immigration and the native wage distribution this paper presents a simple model that examines the impact of offshoring and immigration on wages and tests these predictions using u s state industry year panel data according to the model the productivity effect causes offshoring to have a more positive impact on low skilled wages than immigration but this gap decreases with the workers skill level the empirical results confirm both of these predictions and thus present direct evidence of the productivity effect furthermore the results provide important insight into how specific components of offshoring and immigration affect the wages of particular types of native workers ce texte presente un modele simple qui examine l impact de la delocalisation et de l immigration sur les salaires et teste ses predictions en utilisant des donnees de panel pour l etat americain l industrie et l annee aux etats unis selon le modele l effet de productivite fait que la delocalisation a un effet positif plus important que l immigration sur les salaires des travailleurs faiblement qualifies mais cet ecart decroit a propoprtion que le niveau de qualification des travailleurs s accroit les resultats empiriques confirment ces predictions et fournissent un support direct pour l effet de productivite de plus les resultats jettent un eclairage important sur la facon dont les composantes specifiques de la delocalisation et de l immigration affectent les salaires des travailleurs dans le pays de reference

immigration and wages evidence from construction to identify relative wage impacts of immigration we make use of certification and licensing requirements in the norwegian construction sector that give rise to exogenous variation in immigrant employment shares across trades individual panel data reveal substantially lower wage growth for workers in trades with rising immigrant employment than for other workers selective attrition from the sector masks the causal wage impact unless accounted for by individual fixed effects for low and semi skilled workers effects of new immigration are comparable for natives and older immigrant cohorts consistent with perfect substitutability between native and immigrant labor within trade finally we present evidence that immigration reduces price inflation as price increases over the sample period were significantly lower in activities with growth in the immigrant share than in activities with no or small change in immigrant employment

coming out of the shadows learning about legal status and wages from the legalized population the 1986 immigration reform and control act irca granted amnesty to approximately 1 7 million long term unauthorized workers in an effort to bring them out of the shadows and improve their labor market opportunities an analysis of wages using panel data for a sample of legalized men provides evidence that wage determinants are structurally different after amnesty for them but not for the comparison group as measured during the same time periods the wage penalty for being unauthorized is estimated to range from 14 to 24 the wage benefit of legalization under irca was approximately 6

russia s innovation policy stubborn path dependencies and new approaches abstract for the last twenty years russia has been struggling to turn itself into an efficient market economy innovation and technological development are considered to be one of the best ways to achieve impressive results the country has succeeded in retaining certain strengths of the soviet science and technology system but it has often failed to address the former weaknesses and emerging challenges there are a number of external and internal factors that make reforms inevitable and urgent in the last five six years the political leadership has started an unprecedented attempt to reverse the negative trends and boost russia s innovation performance this paper studies the new policy approaches and suggests several others that might be considered useful at this stage of the country s development this work contributes to the wider debate on the heterogeneity of national innovation systems and adaptation of the respective analytical approach to the study of technological development of the emerging economies it also provides a detailed review of the literature and data sources on the russian science and technology and aims to start filling in the gap in this seriously understudied research area

the economics of immigration this literature review concerns the impact of immigration on the economy of the host country focusing on the experience of the united states the emphasis is on the period from the 1970s to the 1990s the author shows that research earlier in this period generally concluded that the economic effects of immigration were positive but that more recent research on later migrations have generally concluded that immigration may be having an adverse effect on the earnings of native unskilled workers and be placing an increased burden on welfare programs the importance of such economic analysis for the formulation of appropriate migration policies is stressed

coase lecture the glass ceiling despite decades of progress women remain underrepresented in the upper part of the earnings distribution we review the recent research trying to explain this phenomenon after briefly revisiting gender differences in education we turn our attention to a body of work that has argued that gender differences in psychological attributes are holding back women s earnings we then review another active area of research focused on the challenges that women may face when trying to juggle competing demands on their time in the workplace and the home particularly when the home includes children we discuss recent work documenting women s greater demand for flexibility in the workplace as well as work measuring the labour market penalties associated with such demand for flexibility particularly in the higher paying occupations in the economy we highlight possible countervailing forces both at work and at home that may explain why these work family considerations may remain highly relevant to today s glass ceiling despite reduced time spent in non market work and a trend towards a more equal division of non market work between men and women finally we discuss the role that public policy and human resource practices may play in adding more cracks to the glass ceiling

impact of low skilled immigration on female labour supply wir untersuchen die auswirkungen von zuwanderung auf das arbeitsangebot einheimischer frauen insbesondere betrachten wir die auswirkung des anstiegs geringqualifizierter zuwanderer die im haushaltssektor arbeiten auf hoch und geringqualifizierte einheimische frauen wir modellieren individuelle entscheidungen uber die haushaltsproduktion und testen die wichtigsten aussagen dieses modells anhand eines harmonisierten datensatzes cnef unsere stichprobe enthalt lander mit unterschiedlich groszugiger familienpolitik unsere ergebnisse zeigen dass mit einem hoheren anteil an migranten im dienstleistungssektor eines lokal begrenzten arbeitsmarktes die einheimischen hochqualifizierten frauen ihr arbeitsangebot erhohen gleichzeitig steigt die partizipationsrate unqualifizierter einheimischer frauen daruber hinaus zeigen wir dass diese effekte in landern mit restriktiverer familienpolitik starker ausfallen

is the new immigration really so bad this article reviews the recent evidence on us immigration focusing on two key questions 1 does immigration reduce the labour market opportunities of less skilled natives 2 have immigrants who arrived after the 1965 immigration reform act been successfully assimilated overall evidence that immigrants have harmed the opportunities of less educated natives is scant on the question of assimilation the success of the us born children of immigrants is a key yardstick by this metric post 1965 immigrants are doing reasonably well even children of the least educated immigrant origin groups have closed most of the education gap with the children of natives

the effect of immigration on wages exploiting exogenous variation at the national level this paper estimates the effect of immigration on native wages at the national level taking into account the endogenous allocation of immigrants across skill cells time varying exogenous variation across skill cells for a given country is provided by interactions of push factors distance and skill cell dummies distance mitigates the effect of push factors more severely for less educated and middle experienced because the analysis focuses on the united states and canada i propose a two stage approach sub sample 2sls that estimates the first stage regression with an augmented sample of destination countries and the second stage equation with the restricted sub sample of interest i derive asymptotic results for this estimator and suggest several applications beyond the current one the empirical analysis indicates a substantial bias in estimated ols wage elasticities to immigration sub sample 2sls estimates average 1 2 and are very stable to the use of alternative instruments

migrants ancestors and foreign investments we use 130 years of data on historical migrations to the u s to show a causal effect of the ancestry composition of u s counties on foreign direct investment fdi sent and received by local firms to isolate the causal effect of ancestry on fdi we build a simple reduced form model of migrations migrations from a foreign country to a u s county at a given time depend on 1 a push factor causing emigration from that foreign country to the entire u s and 2 a pull factor causing immigration from all origins into that u s county the interaction between time series variation in origin specific push factors and destination specific pull factors generates quasi random variation in the allocation of migrants across u s counties we find that doubling the number of residents with ancestry from a given foreign country relative to the mean increases the probability that at least one local firm engages in fdi with that country by 4 percentage points we present evidence that this effect is primarily driven by a reduction in information frictions and not by better contract enforcement taste similarities or a convergence in factor endowments

networks in the modern economy mexican migrants in the u s labor market this paper attempts to identify job networks among mexican migrants in the u s labor market the empirical analysis uses data on migration patterns and labor market outcomes based on a sample of individuals belonging to multiple origin communities in mexico over a long period of time each community s network is measured by the proportion of the sampled individuals who are located at the destination the united states in any year we verify that the same individual is more likely to be employed and to hold a higher paying nonagricultural job when his network is exogenously larger by including individual fixed effects in the employment and occupation regressions and by using rainfall in the origin community as an instrument for the size of the network at the destination

modeling an immigration shock abstract in this paper we model an overlapping generation economy affected by an unexpected immigration shock and determine how households may insure themselves against immigration risk we use the model to study the impact of immigration on i the welfare of different generations ii the distribution of income among factors of production and iii the optimal design of the intergenerational welfare state in particular we construct a system of public education and public pensions that mimics the efficient complete market allocation we also consider the impact of immigration shocks in a small open economy in this case our model suggests that the external capital flow can act as a substitute for the missing private insurance markets our analysis delivers a set of predictions that we find useful for understanding certain aspects of the spanish experience between 1996 and 2008

assessing inherent model bias an application to native displacement in response to immigration abstract there is a long standing debate among academics about the effect of immigration on native internal migration decisions if immigrants displace natives this may indicate a direct cost of immigration in the form of decreased employment opportunity for native workers moreover displacement would also imply that cross region analyses of wage effects systematically underestimate the consequences of immigration the widespread use of such area studies for the us and other countries makes it especially important to know whether a native internal response to immigration truly occurs this paper introduces a microsimulation methodology to test for inherent bias in regression models that have been used in the literature we show that some specifications have built biases into their models thereby casting doubt on the validity of their results we then provide a brief empirical analysis with a panel of observed us state by skill data together our evidence argues against the existence of native displacement this implies that cross region analyses of immigration s effect on wages are still informative

the labour market impact of immigration in the first part of this paper we present a stylized model of the labour market impact of immigra tion we then discuss mechanisms through which an economy can adjust to immigration changes in factor prices output mix and production technology in the second part we explain the problems of empirically estimating how immigration affects labour market outcomes of the resident population and review some strategies to address these we then summarize some recent empirical studies for the uk and other countries we conclude with an outlook on what we believe are important avenues for future research

immigration wages and education a labour market equilibrium structural model recent literature analysing wage effects of immigration assumes labour supply is fixed across education experience cells this article departs from this assumption estimating a labour market equilibrium dynamic discrete choice model on u s micro data for 1967 2007 individuals adjust to immigration by changing education participation and or occupation adjustments are heterogeneous 4 2 26 2 of prime aged native males change their careers of them some switch to white collar careers and increase education by about three years others reduce labour market attachment and reduce education also by about three years these adjustments mitigate initial effects on wages and inequality natives that are more similar to immigrants are the most affected on impact but also have a larger margin to adjust and differentiate adjustments also produce a self selection bias in the estimation of wage effects at the lower tail of the distribution which the model corrects