Findings

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Kevin Lewis

December 04, 2015

Do E-Verify Mandates Improve Labor Market Outcomes of Low-Skilled Native and Legal Immigrant Workers?

Sarah Bohn, Magnus Lofstrom & Steven Raphael
Southern Economic Journal, April 2015, Pages 960–979

Abstract:
We examine the impact of the 2007 Legal Arizona Workers Act (LAWA) on employment outcomes of low-skilled legal workers. We use the synthetic control method to select a group of states against which the labor market trends of Arizona can be compared. Our results suggest that contrary to its intent, LAWA does not appear to have improved labor market outcomes of legal low-skilled workers who compete with unauthorized immigrants, the target of the legislation. In fact, we find some evidence of diminished employment and increased unemployment among legal low-skilled workers in Arizona. These findings are concentrated on the largest demographic group of workers — non-Hispanic white men. While they are less likely to find employment, those who do have on average higher earnings as a result of LAWA. The pattern of results points to both labor supply and labor demand contractions due to LAWA, with labor supply dominating in terms of magnitude.

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The Association between Immigration and Labor Market Outcomes in the United States

Gaetano Basso & Giovanni Peri
University of California Working Paper, October 2015

Abstract:
In this paper we present important correlations between immigration and labor market outcomes of native workers in the US. We use data on local labor markets, states and regions from the Census and American Community Survey over the period 1970-2010. We first look at simple correlations and then we use regression analysis with an increasing number of controls for observed and unobserved factors. We review the potential methods to separate the part of this correlation that captures the causal link from immigrants to native labor outcomes and we show estimates obtained with 2SLS method using the popular shift-share instrument. One fact emerging from all the specifications is that the net growth of immigrant labor has a zero to positive correlation with changes in native wages and native employment, in aggregate and by skill group. We briefly review the literature on the channels and the mechanisms that allow local economies to absorb immigrants with no negative (and possibly positive) impact on the labor demand for natives.

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Integration policy: Cultural transmission with endogenous fertility

Sagit Bar-Gill & Chaim Fershtman
Journal of Population Economics, January 2016, Pages 105-133

Abstract:
We live in heterogeneous societies with many cultural and ethnic minorities. The cultural composition of our societies changes over time as a result of immigration, fertility choices, and cultural assimilation. Studying such population dynamics, we examine the effect of integration policies, which increase the cost of direct cultural transmission, on the size of the cultural minority. We show that integration policies, while often aimed at reducing the minority’s size, may have the opposite effect of increasing minority fertility and its growth rate.

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Immigration, Human Capital Formation and Endogenous Economic Growth

Isaac Ehrlich & Jinyoung Kim
NBER Working Paper, November 2015

Abstract:
Data assembled by the World Bank and other sources covering 77% of the world’s migrant population indicate that the skill composition of migrants in major destination countries, including the US, has been rising over the last 4 decades, and that the population share of skilled migrants has been approaching or exceeding that of skilled natives. We offer theoretical propositions and empirical tests consistent with these trends via a general-equilibrium model of endogenous growth where human capital, population, income growth and distribution, and migration trends are endogenous. We derive new insights about the impact of migration on long-term income growth and distribution and net benefits to natives in both destination and source countries.

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High-Skilled Migration and Global Innovation

Rui Xu
Stanford Working Paper, November 2015

Abstract:
Science and engineering (S&E) workers are the fundamental inputs into scientific innovation and technology adoption. In the United States, more than 20% of the S&E workers are immigrants from developing countries. In this paper, I evaluate the impact of such brain drain from non-OECD (i.e., developing) countries using a multi-country endogenous growth model. The proposed framework introduces and quantifies a “frontier growth effect” of skilled migration: migrants from developing countries create more frontier knowledge in the U.S., and the non-rivalrous knowledge diffuses to all countries. In particular, each source country is able to adopt technology invented by migrants from other countries, a previously ignored externality of skilled migration. I quantify the model by matching both micro and macro moments, and then consider counterfactuals wherein U.S. immigration policy changes. My results suggest that a policy – which doubles the number of immigrants from every non-OECD country – would boost U.S. productivity growth by 0.1 percentage point per year, and improve average welfare in the U.S. by 3.3%. Such a policy can also benefit the source countries because of the “frontier growth effect”. Taking India as an example source country, I find that the same policy would lead to faster long-run growth and a 0.9% increase in average welfare in India. This welfare gain in India is largely the result of additional non-Indian migrants, indicating the significance of the previously overlooked externality.

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Can selective immigration policies reduce migrants’ quality?

Simone Bertoli, Vianney Dequiedt & Yves Zenou
Journal of Development Economics, forthcoming

Abstract:
Destination countries can adopt selective immigration policies to improve migrants’ quality. Screening potential migrants on the basis of observable characteristics also influences their self-selection on unobservables. We propose a model that analyzes the effects of selective immigration policies on migrants’ quality, measured by their wages at destination. We show that the prevailing pattern of selection on unobservables influences the effect of an increase in selectivity, which can reduce migrants’ quality when migrants are positively self-selected on unobservables. We also demonstrate that, in this case, the quality-maximizing share of educated migrants declines with the scale of migration.

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Between the Public and the State: The Shipping Lobby's Strategies against US Immigration Restrictions 1882–1917

Torsten Feys
International Migration Review, forthcoming

Abstract:
Based on Freeman's model of interest group-driven migration policies, the article gives a qualitative inside look on a neglected actor during the formative years of US immigration reform. It analyzes the central role of the shipping companies in coordinating the pro-immigration campaign with and against other interest groups. Their lobbying is divided into two complementary sections: inside top-down efforts (lobbyists) to influence legislators and outside bottom-up efforts (migrant communities and the press) to mobilize the public. It assesses the importance of public opinion in their lobby campaigns and the shipping companies' success in delaying far-reaching restrictions until 1917.

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Immigration Quotas and Immigrant Selection

Catherine Massey
Explorations in Economic History, forthcoming

Abstract:
Several factors influenced the composition of migrants in the early 20th century, including World War I, the Literacy Act of 1917, and the implementation of strict immigration quotas. This paper examines whether the United States’ first immigration quota, established under the Emergency Immigration Act of 1921, affected migrant selection. The Emergency Immigration Act of 1921 severely capped the number of admittable migrants by nationality. Canadian migrants, or any migrants who resided in Canada for five consecutive years, were unrestricted by the quota and could freely migrate to the U.S. Using transcribed ship records from states bordering Canada (specifically New York, Alaska, and Washington), I compare the skills of restricted migrants to the skills of unrestricted Canadian migrants, before and after establishment of the 1921 quota. Difference-in-differences estimates indicate that the quota resulted in migrants of higher skill.

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Tu Casa, Mi Casa: Naturalization and Belonging among Latino Immigrants

Maria Abascal
International Migration Review, forthcoming

Abstract:
Previous studies reach contradictory conclusions regarding the relationship between residential concentration and naturalization. This paper tackles the impasse by exploring the pathways through which immigrant communities influence individual naturalization. Specifically, this study examines naturalization among Latino immigrants using the 2006 Latino National Survey linked to county data. Multilevel model results indicate that the county concentration of naturalized co-ethnics positively predicts individual naturalization, and this relationship operates through two channels: information dissemination and perceived belonging. Regarding the latter, Latino immigrants who live among naturalized co-ethnics identify more strongly as “American,” and strength of American identification mediates nearly one-half of the relationship between concentration and naturalization.

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Whom Do Immigrants Marry? Emerging Patterns of Intermarriage and Integration in the United States

Daniel Lichter, Zhenchao Qian & Dmitry Tumin
ANNALS of the American Academy of Political and Social Science, November 2015, Pages 57-78

Abstract:
We document patterns of intermarriage between immigrants and natives during a period of unprecedented growth in the size and diversity of America’s foreign-born population. Roughly one in six U.S. marriages today involve immigrants and a large share includes U.S.-born partners. Ethno-racial background clearly shapes trajectories of immigrant social integration. White immigrants are far more likely than other groups to marry U.S.-born natives, mostly other whites. Black immigrants are much less likely to marry black natives or out-marry with other groups. Intermarriage is also linked with other well-known proxies of social integration — educational attainment, length of time in the country, and naturalization status. Classifying America’s largest immigrant groups (e.g., Chinese and Mexican) into broad panethnic groups (e.g., Asians and Hispanics) hides substantial diversity in the processes of marital assimilation and social integration across national origin groups.

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Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal Data

Neeraj Kaushal et al.
NBER Working Paper, November 2015

Abstract:
We study the short-term trajectories of employment, hours worked, and real wages of immigrants in Canada and the U.S. using nationally representative longitudinal datasets covering 1996-2008. Models with person fixed effects show that on average immigrant men in Canada do not experience any relative growth in these three outcomes compared to men born in Canada. Immigrant men in the U.S., on the other hand, experience positive annual growth in all three domains relative to U.S. born men. This difference is largely on account of low-educated immigrant men, who experience faster or longer periods of relative growth in employment and wages in the U.S. than in Canada. We further compare longitudinal and cross-sectional trajectories and find that the latter over-estimate wage growth of earlier arrivals, presumably reflecting selective return migration.

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The healthy immigrant (migrant) effect: In search of a better native-born comparison group

Tod Hamilton
Social Science Research, November 2015, Pages 353–365

Abstract:
This paper evaluates whether immigrants’ initial health advantage over their U.S.-born counterparts results primarily from characteristics correlated with their birth countries (e.g., immigrant culture) or from selective migration (e.g., unobserved characteristics such as motivation and ambition) by comparing recent immigrants’ health to that of recent U.S.-born interstate migrants (“U.S.-born movers”). Using data from the 1999–2013 waves of the March Current Population Survey, I find that, relative to U.S.-born adults (collectively), recent immigrants have a 6.1 percentage point lower probability of reporting their health as fair or poor. Changing the reference group to U.S.-born movers, however, reduces the recent immigrant health advantage by 28%. Similar reductions in the immigrant health advantage occurs in models estimated separately by either race/ethnicity or education level. Models that examine health differences between recent immigrants and U.S.-born movers who both moved for a new job — a primary motivation behind moving for both immigrants and the U.S.-born — show that such immigrants have only a 1.9 percentage point lower probability of reporting their health as fair or poor. Together, the findings suggest that changing the reference group from U.S.-born adults collectively to U.S.-born movers reduces the identified immigrant health advantage, indicating that selective migration plays a significant role in explaining the initial health advantage of immigrants in the United States.

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Return Migration to Mexico: Does Health Matter?

Erika Arenas et al.
Demography, December 2015, Pages 1853-1868

Abstract:
We use data from three rounds of the Mexican Family Life Survey to examine whether migrants in the United States returning to Mexico in the period 2005–2012 have worse health than those remaining in the United States. Despite extensive interest by demographers in health-related selection, this has been a neglected area of study in the literature on U.S.-Mexico migration, and the few results to date have been contradictory and inconclusive. Using five self-reported health variables collected while migrants resided in the United States and subsequent migration history, we find direct evidence of higher probabilities of return migration for Mexican migrants in poor health as well as lower probabilities of return for migrants with improving health. These findings are robust to the inclusion of potential confounders reflecting the migrants’ demographic characteristics, economic situation, family ties, and origin and destination characteristics. We anticipate that in the coming decade, health may become an even more salient issue in migrants’ decisions about returning to Mexico, given the recent expansion in access to health insurance in Mexico.

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The Relative Quality of Foreign-Educated Nurses in the United States

Patricia Cortés & Jessica Pan
Journal of Human Resources, Fall 2015, Pages 1009-1050

Abstract:
We examine the relative quality of foreign-educated nurses using wages as a measure of skill. Philippine-educated nurses enjoy a wage premium that is not explained by observed differences in worker or job characteristics. We reconcile the results with a Roy model featuring endogenous skill acquisition and provide some empirical evidence of double-selection into nursing and migration. Our results suggest that the wage premium is likely driven by strong positive selection into nursing among Filipinos resulting from high and heterogeneous returns to the occupation due to active government support for nurse migration in the Philippines.

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Recovering Heritage and Homeland: Ethnic Revival Among Fourth-Generation Japanese Americans

Takeyuki (Gaku) Tsuda
Sociological Inquiry, November 2015, Pages 600–627

Abstract:
In recent years, fourth-generation Japanese American youth have been attempting to recover their ethnic heritage and reconnect with their ancestral homeland. This ethnic revival is a response to their continued racialization as “Japanese,” which has caused them to become concerned about their overassimilation to American society in an era of multiculturalism where cultural heritage and homeland have come to be positively valued. As a result, they are studying Japanese, majoring in Asian studies, living in Japan as college exchange students, and participating in Japanese taiko drum ensembles in local ethnic communities. Although this return to ethnic roots is a more serious commitment than the symbolic ethnicity observed among white ethnics in the past, it indicates that ethnicity remains involuntary for racial minorities, even after four generations. The case of later-generation Japanese Americans demonstrates that cultural assimilation does not preclude the continuation and active production of ethnic difference.

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Russian Jewish Immigrants in the United States: The Adjustment of their English Language Proficiency and Earnings in the American Community Survey

Barry Chiswick & Nicholas Larsen
Contemporary Jewry, October 2015, Pages 191-209

Abstract:
This paper is concerned with the determinants of the English language proficiencies and labor market earnings of adult Russian Jewish male and female immigrants to the United States, compared to other immigrants, using the pooled files of the American Community Survey (2005–09). Although at arrival the Russian Jewish immigrants report lower levels of English skills and earnings, they experience a more rapid improvement over time, and eventually attain parity or higher levels than other immigrants. Moreover, they appear to obtain greater earnings (compared to other immigrants) in the US labor market from their schooling, their time in the United States, and their English proficiency. These findings mirror those found in earlier post-war data (1980–2000 Census) and, to the extent comparable, late 19th and early 20th century studies of Russian Jewish immigrants.

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Inverting the Logic of Economic Migration: Happiness Among Migrants Moving from Wealthier to Poorer Countries in Europe

David Bartram
Journal of Happiness Studies, October 2015, Pages 1211-1230

Abstract:
Migration from a poorer country to a wealthier one often results in a lower relative economic status for the migrant (even when it increases their incomes in an “absolute” sense) — and thus perhaps results also in a decrease in his/her happiness. By the same logic, migration from a wealthy country to a poorer one might bring a higher status position for the migrant and so might raise his/her happiness. This paper investigates happiness among migrants who move from northern European countries to Spain, Portugal, Greece and Cyprus, comparing them to stayers in the origin countries (Belgium, Switzerland, France, Germany, Britain, and the Netherlands). The analysis shows that migrants are less happy than stayers, in a bivariate comparison and a conventional regression model. A consideration of results from “treatment models” and matching analyses suggests that the difference represents a decrease in happiness for the migrants (and not a difference in happiness prior to migration), contrary to an expectation rooted in an anticipated increase in economic status. Migrants have lower relative incomes than stayers; when relative income is controlled, the happiness disadvantage of migrants is smaller. Controlling additionally for absolute income does not lead to further change in that difference.


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