Working Paper: CEPR ID: DP13998
Authors: Joan Monras
Abstract: When comparing high- to low-immigrant locations, a large literature documents small effects of immigration on labor market outcomes over ten-year horizons. The literature also documents short-run negative effects of immigrant-driven labor supply shocks, at least for some groups of native workers. Taken together, those results suggests that there are mechanisms in place that help local economies recover from the short-run effects of immigrant shocks. This paper introduces a small open-city spatial equilibrium model that allows, with simple reduced form estimates of the effects of immigrant shocks on the outcomes of interest, the local adjustment to be decomposed through various channels.
Keywords: international and internal migration; technology adoption
JEL Codes: F22; J20; J30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Immigrant-driven labor supply shocks (J69) | local labor market outcomes (J49) |
| Influx of Cuban immigrants (F22) | short-run decline in wages for low-educated workers in Miami (F66) |
| short-run decline in wages for low-educated workers in Miami (F66) | recovery of wages and rental prices by 1990 (E64) |
| Internal migration (R23) | recovery in indirect utility post-shock (D11) |
| Local labor demand adjustments (J23) | recovery in indirect utility post-shock (D11) |