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American Economic Review Vol. 97 No. 2 2007

The Effects of Recent Immigration on Racial/Ethnic Labor Market Differentials

Deborah Reed1; Sheldon Danziger2

1 Public Policy Institute of California, 500 Washington St., San Francisco, CA 94111. · 2 Gerald R. Ford School of Public Policy, University of Michigan, 735 S. State St., Ann Arbor, MI 48104.

Abstract

We analyze the impact of recent immigration on the employment and wages of less educated workers during the 1990s, a period of heightened geographic diffusion of immigrants across the nation. We focus on men residing in metropolitan areas, who are between the ages of 25 and 62 and are from the three major racial/ ethnic groups: white non-Hispanic, black nonHispanic, and Latino (hereafter referred to as race groups). Theory predicts that immigration will increase the wages of native workers who are complements to immigrants and decrease the wages of natives who are substitutes. Because immigrants have low education relative to natives, low-educated natives are likely to be substitutes, and high-educated natives are likely to be complements. We find negative effects of recent immigration on the employment, and especially the wages, of low-skilled workers. The wage effects are largest for Latinos, followed by blacks.

DOI
10.1257/aer.97.2.373
Volume
97
Issue
2
Pages
373-377
Language
en
Sources
bibtex:phds-export.bib crossref openalex

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