Working Papers

Analyzing the local labor market impacts of immigrant arrivals is challenging due to immigrants’ non-random selection of destinations and heterogeneity of industries and skill groups within a local labor market. To address these issues, I first generate quasi-random variation in historical origin-by-destination immigration patterns from 1870 to 2010. Then I construct a continuous measure of skill types from education data to isolate unique exogenous immigration shocks. I find that low-skill and medium-skill native employment shares are adversely impacted, whereas their high-skill counterparts are positively affected by immigration shocks similar to total employment and establishment shares. The heterogenous treatment effects reveal that the tradable sector captures the major portion of the positive impacts, while the negative impacts mainly emanate from the nontradable sector. The empirical findings are supported by a CES model of labor demand, in which immigrant and native labor supplies are imperfectly substitutable across industries.

Work in Progress