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

Citation Type: Working Paper

Publication Year: 2010

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Abstract: This paper analyzes the consequences of immigration on wages and education with a labor market equilibrium structural model. Heterogeneous workers make yearly decisions on education, participation, and occupation. The labor demand takes into account skill-biased technical change. The equilibrium approach allows to disentangle price from composition effects of immigration on wages. Preliminary results suggest that the 40 years of mass immigration experimented by the US reduced wages a 5% on average, with a more severe fall of blue-collar wages. Natives, onthe other hand, adjusted their human capital investment behavior to partially compensate the fall. Further counterfactuals (still work in progress) (will) analyze theexisting literature using data simulated by the model, and I (will) evaluate two immigration policies: a quota system and a selective admission policy.

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Authors: Llull, Joan

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Publication Number: 366

Institution: Centro de Estudios Monetarios y Financieros

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Publisher Location: Madrid, Spain

Data Collections: IPUMS USA, IPUMS CPS

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

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