Jobs, Poverty, and Earnings in American Metropolises: Do Immigrants Really Hurt the Economic Outcomes of Blacks?

We contribute to the debate about the effects of immigration in the United States by analyzing the impact of recent (1980-2000) immigration on the economic outcomes of African Americans. We use Census 2000 data for a sample of 150 U.S. metropolitan areas to examine these outcomes. Our findings indicate that after controlling for a variety of theoretically relevant control variables, increases in recent immigration decrease labor force non-participation and poverty, and increase median earnings, among blacks. We argue that recent immigration expands blacks' job opportunities in or near the middle of the occupational hierarchy (e.g., protective services; office and administrative support). However, we also find a non-linear effect of immigration on black median earnings which indicates an immigrant population threshold where black earnings begin to decline. Thus, both sides of this debate may be correct: middle-class blacks benefit from increased immigration, but the gains of the black middle class do not always offset the fact that poor and lower-skilled blacks are losing out because of increased competition with immigrants.