Full Citation
Title: Are Immigrants a Shot in the Arm for the Local Economy?
Citation Type: Working Paper
Publication Year: 2015
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Abstract: Most research on the effects of immigration focuses on the effects of immigrants as adding to the supply of labor. This paper studies the effects of immigrants on local labor demand, due to the increase in consumer demand for local services created by immigrants. This effect can attenuate downward pressure from immigrants on non-immigrants' wages, and also benefit non-immigrants can raise native workers' real wages, and each immigrant could create more than one job. Using US Census data from 1990 and 2000, we find considerable evidence for these effects: Each immigrant creates 2 local jobs, and 80% of these jobs are in non-traded services. Immigrants appear to raise local non-tradables sector wages and to attract native-born workers from elsewhere in the country. Overall, it appears that local workers benefit from the arrival of more immigrants.
Url: http://www.nber.org/papers/w21123
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Authors: McLaren, John; Hong, Gihoon
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Publication Number: 21123
Institution: NBER
Pages: 69
Publisher Location: Cambridge, MA
Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure, Migration and Immigration
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