Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession

This paper demonstrates that low-skilled Mexican-born immigrants' location choices respond strongly to changes in local labor demand, which helps equalize spatial differences in employment outcomes for low-skilled native workers. We leverage the substantial geographic variation in labor demand...

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Veröffentlicht in:American economic journal. Applied economics 2016-01, Vol.8 (1), p.257-290
Hauptverfasser: Cadena, Brian C., Kovak, Brian K.
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description This paper demonstrates that low-skilled Mexican-born immigrants' location choices respond strongly to changes in local labor demand, which helps equalize spatial differences in employment outcomes for low-skilled native workers. We leverage the substantial geographic variation in labor demand during the Great Recession to identify migration responses to local shocks and find that low-skilled Mexican-born immigrants respond much more strongly than low-skilled natives. Further, Mexican mobility reduced the incidence of local demand shocks on natives, such that those living in metro areas with a substantial Mexican-born population experienced a roughly 50 percent weaker relationship between local shocks and local employment probabilities.
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source JSTOR; American Economic Association Web
subjects Analysis
Demographics
Demography
Economic theory
Economics
Education
Employment
Great Recession
Immigrants
Immigration policy
Labor economics
Labor market
Migration
Noncitizens
Population
Population decline
Skilled workers
Skills
Studies
title Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession
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