The role of immigrants in the United States labor market and Chinese import competition

Chan Yu

Journal of International Economics, 2023, vol. 144, issue C

Abstract: Research has shown a limited labor mobility response to trade shocks. However, existing studies of aggregate mobility may miss important heterogeneity. This paper proposes a mechanism through which local labor markets adjust to trade shocks, namely immigrant mobility. I find a relative decline in the immigrant population in areas more exposed to import growth from China. An interquartile increase in Chinese import exposure decreases the immigrant population by 5.4% but has little effect on the native population. Additionally, immigrant mobility mitigates the effects of trade shocks on native labor outcomes. The present study shows that natives in areas with more immigrants experience smaller declines in employment relative to areas with fewer immigrants.

Keywords: Trade; Immigrants; Geographic mobility; Manufacturing (search for similar items in EconPapers)
JEL-codes: F14 F16 J15 J23 J31 J61 R12 R23 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:144:y:2023:i:c:s0022199623000788

DOI: 10.1016/j.jinteco.2023.103792

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