Does Immigration Grease the Wheels of the Labor Market?

macroeconomics, immigration, labor market

The Sensitivity of Labor Demand Functions to Choice of Dependent Variable

This paper investigates whether the parameters of labor demand functions are sensitive to alternative methods of estimation. The assumption that the production technology is of the Generalized Leontief type implies that the demand system can be estimated by analyzing cross-section differences in earnings across labor markets, by studying longitudinal changes in earnings within a labor market, or by investigating cross-section differences in labor force participation rates across labor markets. The estimation of these models on the 1970 and 1980 Public Use Samples from the U.S. Census reveals that the estimates of labor demand functions are indeed quite robust to major specification changes.

The Intergenerational Mobility of Immigrants

This paper analyzes the intergenerational mobility of immigrants. Using the 1940-1970 Censuses, the study reveals an important link between the earnings of immigrants and the earnings of their American-born children. Although there is some regression towards the mean, the earnings of second-generation Americans are strongly affected by variables describing economic conditions in the source countries of their parents. Current immigration policy, therefore, determines not only how immigrants perform in the labor market, but also determines tomorrow's differences in the labor market experiences of American-born ethnic groups.

The Economic Integration of Immigrants in the United States: Lessons for Policy

immigration, assimilation, economic integration

Welfare Reform, Labor Supply, and Health Insurance in the Immigrant Population

Although the 1996 welfare reform legislation limited the eligibility of immigrant households to receive assistance, many states chose to protect their immigrant populations by offering state-funded aid to these groups. I exploit these changes in eligibility rules to examine the link between the welfare cutbacks and health insurance coverage in the immigrant population. The data reveal that the cutbacks in the Medicaid program did not reduce health insurance coverage rates among targeted immigrants. The immigrants responded by increasing their labor supply, thereby raising the probability of being covered by employer-sponsored health insurance.

Making it in America: Social Mobility in the Immigrant Population

The ultimate impact of immigration on the United States obviously depends not only on the economic, social, political, and cultural shifts that take place during the life cycle of the immigrant population, but also on the adjustment process experienced by the immigrant household across generations. This paper documents the evidence on social mobility in the immigrant population and summarizes some of the lessons implied by the evidence. There is significant economic "catching up" between the first and second generations, with the relative wage of the second generation being, on average, about 5 to 10 percent higher than that of the first generation. At the same time, there is a strong positive correlation between the socioeconomic outcomes experienced by ethnic groups in the immigrant generation and the outcomes experienced by their children, and a weaker correlation between the immigrants and their grandchildren. In rough terms, about half of the differences in relative economic status across ethnic groups observed in one generation persist into the next. As a result, the very large ethnic differences in economic status that characterize the current immigrant population will likely dominate discussions of American social policy for much of the 21st century.