Immigration and Inequality

  title={Immigration and Inequality},
  author={David Card},
  journal={NBER Working Paper Series},
  • David Card
  • Published 1 January 2009
  • Economics
  • NBER Working Paper Series
Immigration is often viewed as a proximate cause of the rising wage gap between high- and low-skilled workers. Nevertheless, there is controversy over the appropriate framework for measuring the presumed effect, and over the magnitudes involved. This paper offers an overview and synthesis of existing knowledge on the relationship between immigration and inequality, focusing on evidence from cross-city comparisons in the U.S. Although some researchers have argued that a cross-city research… 
The impact of immigration on the French labor market: Why so different?
Combining large (up to 25%) extracts of five French censuses and data from Labor Force Surveys for 1968-1999, we use Borjas (2003)'s factor proportions methodology for France and find that a 10 p.p.
The Impact of Immigration on Wages of Unskilled Workers
Immigrants did not contribute to the national decline in wages at the national level for native-born workers without a college education. This article reviews how the timing of their immigration and
The Impact of Immigration: Why Do Studies Reach Such Different Results?
We classify the empirical literature on the wage impact of immigration into three groups, where studies in the first two groups estimate different relative effects, and studies in the third group
Immigration and Labor Market Outcomes in U.S. Metropolitan Areas
Two broad orientations have motivated scholarship on the relationship between immigration and labor market outcomes in the United States. The first, the supply-side perspective, often focuses on how
Skilled Immigration, Innovation and Wages of Native-born American
The paper examines the effects of skilled immigration on US wages that are due to innovation. We extend the studies by Hunt & Gauthier-Loiselle (2010), and Hunt (2011) to explore the
Immigration and earnings inequality in America's new small-town destinations.
This work considers a third perspective called the reciprocal effects hypothesis which contends that immigrant concentration and earnings inequality emerge together through a mutually reinforcing feedback process and uses three-stage least squares estimation to address the endogeneity problem.
Explaining the Unexplained: Residual Wage Inequality, Manufacturing Decline, and Low-Skilled Immigration
This paper investigates whether the increasing "residual wage inequality" trend is related to manufacturing decline and the influx of low-skilled immigrants. There is a vast literature arguing that
Comment: The Elusive Search for Negative Wage Impacts of Immigration
Labor demand curves slope down.1 From this statement it is a short leap to the Malthusian proposition that an increase in the supply of workers reduces wages. So short is the leap, in fact, that the
The Impact of Immigration on Wages, Internal Migration, and Welfare
This paper studies the impact of immigration on wages, internal migration and welfare. Using U.S. Census data, I estimate a spatial equilibrium model where labor differs by skill level, gender and
Rethinking the area approach: Immigrants and the labor market in California
Abstract A framework that uses a Constant Elasticity of Substitution (CES) production function with skill differentiation and integrated national labor markets has predictions for the employment


Is the New Immigration Really so Bad?
This paper reviews the recent evidence on U.S. immigration, focusing on two key questions: (1) Does immigration reduce the labor market opportunities of less-skilled natives? (2) Have immigrants who
Imperfect Substitution between Immigrants and Natives: A Reappraisal
In a recent paper, Ottaviano and Peri (2007a) report evidence that immigrant and native workers are not perfect substitutes within narrowly defined skill groups. The resulting complementarities have
Immigration and National Wages: Clarifying the Theory and the Empirics
This paper estimates the effects of immigration on wages of native workers at the national U.S. level. Following Borjas (2003) we focus on national labor markets for workers of different skills and
The Impact of Immigration on the Structure of Male Wages: Theory and Evidence from Britain
Immigration to the UK has risen in the past 10 years and has had a measurable effect on the supply of different types of labour. But, existing studies of the impact of immigration on the wages of
Assessing Inherent Model Bias: An Application to Native Displacement in Response to Immigration
There is a long-standing debate among academics about the effect of immigration on native internal migration decisions. If immigrants displace natives this may indicate a direct cost of immigration
Reconciling National and Regional Estimates of the Effect of Immigration on U.S. Labor Markets: The Confounding Effects of Native Male Incarceration Trends
In this paper, we reconcile the disparity between regional and national level estimates of the effect of immigration on native earnings. The reconciliation derives from the fact that existing
Rethinking the Effects of Immigration on Wages
This paper asks the following important question: what was the effect of surging immigration on average and individual wages of U.S.-born workers during the period 1990-2004? Building on section VI I
Local, Open Economies within the U.S.: How Do Industries Respond to Immigration?
A series of studies has found that relative wages and employment rates in different local labor markets of the US are surprisingly unaffected by local factor supplies. This paper evaluates two
Joint impacts of immigration on wages and employment: review and meta-analysis
The quantitative approaches presented in the literature to estimate the impact of immigration on the labour market, particularly at the regional level are outlined and a simultaneous equations approach to the meta-analysis of wage and employment effects is used.
The Substitutability of Natives and Immigrants in Production
T HE United States is a country of immigrants and sons and daughters of former immigrants. From colonial times to the 1920s, America had an open door immigration policy. Although the formal policy