Full Citation

Title: Immigration, Wages, and Education: A Labor Market Equilibrium Structural Model

Citation Type: Working Paper

Publication Year: 2013

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Abstract: This paper analyzed the effect of immigration on wages taking into account human capital and labor supply adjustments. Using U.S. microdata for 1967-2007, I estimate a labor market equilibrium model that includes endogenous decisions on education, participation, and occupation, and allows for skill-biased technical change. Results suggest important labor market adjustments that mitigate the effect of immigration on wages. These adjustments include career switches, labor market detachment and changes in schooling decisions, and are heterogenous across the workforce. The adjustments generate substantial self-selection biases at the lower tail of the wage distribution that are corrected by the estimated model.

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Authors: Llull, Joan

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Publication Number: 711

Institution: Barcelona Graduate School of Economics

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Publisher Location: Barcelona, Spain

Data Collections: IPUMS USA

Topics: Education, Labor Force and Occupational Structure, Migration and Immigration

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