Working Paper: NBER ID: w14900
Authors: Francesca Mazzolari; David Neumark
Abstract: We study the effects of immigration on the diversity of consumption choices. Data from California in the 1990s indicate that immigration is associated with fewer stand-alone retail stores, and a greater number of large and in particular big-box retailers - evidence that likely contradicts a diversity-enhancing effect of immigration. In contrast, focusing on the restaurant sector for which we can better identify the types of products consumed by customers, we find that immigration is associated with increased ethnic diversity of restaurants. This latter effect appears to come in part from the comparative advantage of immigrants in the production of ethnic goods.
Keywords: Immigration; Product Diversity; Consumption Choices
JEL Codes: J18; J2; J61
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Immigration (F22) | Reduction in standalone retail stores (L81) |
| Immigration (F22) | Increase in large retailers (L81) |
| Increase in foreign-born population (J11) | Decrease in number of small retail establishments (L81) |
| Increase in foreign-born population (J11) | Increase in share of ethnic restaurants (J15) |
| Ethnic diversity of restaurants (J15) | Corresponds positively with ethnic diversity of the immigrant population (J15) |
| Immigration (F22) | Shift towards larger retailers (L81) |