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The labor market impact of immigration: Job creation versus job competition

By: Albert, Christoph.
Material type: materialTypeLabelBookPublisher: American Economic Journal: Macroeconomics Description: 13(1), Jan, 2021: p.35-78. In: American Economic Journal: MacroeconomicsSummary: This paper studies the labor market effects of both documented and undocumented immigration in a search model featuring nonrandom hiring. As immigrants accept lower wages, they are preferably chosen by firms and therefore have higher job finding rates than natives, consistent with evidence found in US data. Immigration leads to the creation of additional jobs but also raises competition for natives. The dominant effect depends on the fall in wage costs, which is larger for undocumented immigration than it is for legal immigration. The model predicts a dominating job creation effect for the former, reducing natives' unemployment rate, but not for the latter. – Reproduced
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Articles Articles Indian Institute of Public Administration
13(1), Jan, 2021: p.35-78 Available AR124740

This paper studies the labor market effects of both documented and undocumented immigration in a search model featuring nonrandom hiring. As immigrants accept lower wages, they are preferably chosen by firms and therefore have higher job finding rates than natives, consistent with evidence found in US data. Immigration leads to the creation of additional jobs but also raises competition for natives. The dominant effect depends on the fall in wage costs, which is larger for undocumented immigration than it is for legal immigration. The model predicts a dominating job creation effect for the former, reducing natives' unemployment rate, but not for the latter. – Reproduced

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