Working Paper: NBER ID: w11610
Authors: George J. Borjas
Abstract: 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 percent, depending on whether the labor market is defined at the state or metropolitan area level.
Keywords: Immigration; Wages; Internal Migration; Labor Market
JEL Codes: J61; R23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Immigration (F22) | lower inmigration rates (J11) |
| Immigration (F22) | higher outmigration rates (F22) |
| Immigration (F22) | decline in growth of native workforce (J69) |
| Native migration response to immigration (F22) | attenuates measured impact of immigration on wages (J69) |
| Immigration (F22) | wage changes (J31) |
| Immigration (F22) | negative causal effect on native wages (F66) |
| Geographic definition of labor market (J61) | variation in spatial correlation between wages and immigration (J69) |