IMMIGRATION AND THE LABOR FORCE PARTICIPATION OF LOW-SKILL NATIVE WORKERS

Abstract

This paper analyzes the impact of immigration on low-skill native workers using pooled CPS data on cities in static and dynamic fixed effects models. Labor force participation is shown to be the dominant adjustment mechanism to immigrant inflows. Furthermore, native participation responses are stronger in immigrant-dense cities than in areas with sparser concentrations. These results hold after accounting for the potential endogeneity of immigrant locational decisions. The labor supply adjustments absorb most of the impact of immigration, and account for the weakness of the observed effects of immigration on wages and employment.

Citation

Johannsson, H., Weiler, S. and Shulman, S. (2003), "IMMIGRATION AND THE LABOR FORCE PARTICIPATION OF LOW-SKILL NATIVE WORKERS", Polachek, S.W. (Ed.) Worker Well-Being and Public Policy (Research in Labor Economics, Vol. 22), Emerald Group Publishing Limited, Leeds, pp. 291-308. https://doi.org/10.1016/S0147-9121(03)22009-4