Task specialization, comparative advantages, and the effects of immigration on wages
By: Giovanni Peri, Chad Sparber.
Contributors: Sparber, Chad.; National Bureau of Economic Research.
Series: NBER working paper series -- no. 13389.; Working paper series (National Bureau of Economic Research) -- working paper no. 13389.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 51
Subjects: Immigrants -- Economic aspects -- United States; Unskilled labor -- Economic aspects -- United States; Wages -- United States -- Econometric models; United States -- Emigration and immigration -- Economic aspects -- History -- 20th century
Description: Many workers with low levels of educational attainment immigrated to the United States in recent decades. Large inflows of less-educated immigrants would reduce wages paid to comparably-educated native-born workers if the two groups compete for similar jobs. In a simple model exploiting comparative advantage, however, we show that if less-educated foreign and native-born workers specialize in performing complementary tasks, immigration will cause natives to reallocate their task supply, thereby reducing downward wage pressure. Using individual data on the task intensity of occupations across US states from 1960-2000, we then demonstrate that foreign-born workers specialize in occupations that require manual tasks such as cleaning, cooking, and building. Immigration causes natives -- who have a better understanding of local networks, rules, customs, and language -- to pursue jobs requiring interactive tasks such as coordinating, organizing, and communicating. Simulations show that this increased specialization mitigated negative wage consequences of immigration for less-educated native-born workers, especially in states with large immigration flows.
Notes: "September 2007"

Includes bibliographical references (p. 30-32).

Also available in PDF from the NBER world wide web site (www.nber.org).