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STATE OF THE ART THE EFFECTS OF LABOR MARKET COMPETITION WITH IMMIGRANTS ON THE WAGES AND EMPLOYMENT OF NATIVES What Does Existing Research Tell Us? Steven Raphael Goldman School of Public Policy, University of California, Berkeley Lucas Ronconi Goldman School of Public Policy, University of California, Berkeley Abstract This paper provides an overview of the current debate among economists pertaining to the effects of recent immigration on the earnings and employment of native-born workers. Since much of this debate revolves around methodological differences in research design, we devote much of our effort to discussing the various strategies that researchers have used to isolate immigrant competition effects, and attempt to clarify the strengths and weaknesses of each strategy. Our overall assessment is that the central tendency of the research evidence suggests that recent immigration has had only a modest effect on the labor market prospects of native-born Americans. Some potential hypotheses that may explain this lack of a large impact are capital accumulation and the imperfect substitutability between natives and immigrants. Keywords: Immigration, Employment, Wages, Skills, Incarceration INTRODUCTION Since the passage of the 1965 Immigration and Nationality Act, the United States has experienced a sustained inflow of foreign migrants. These immigration flows have increased the proportion of the U.S. resident population that is foreign-born and have contributed disproportionately to U.S. population growth. In 1970, the foreign-born accounted for 4.7% of the U.S. population. By 2000, the percentage of foreign-born increased to 10.4%. During these three decades, the foreign-born Du Bois Review, 4:2 (2007) 413–432. © 2007 W. E. B. Du Bois Institute for African and African American Research 1742-058X007 $15.00 doi:10.10170S1742058X07070233 413
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THE EFFECTS OF LABOR MARKET COMPETITION WITH IMMIGRANTS ON THE WAGES AND EMPLOYMENT OF NATIVES

Aug 03, 2023

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