Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis

Joan Monras

SciencePo Working papers Main from HAL

Abstract: How does the US labor market absorb low-skilled immigration? I address this question using the 1995 Mexican Peso Crisis, an exogenous push factor that raised Mexican migration to the US. In the short run, high-immigration states see their low-skilled labor force increase and native low-skilled wages decrease, with an implied local labor demand elasticity of -.7. Internal relocation dissipates this shock spatially. In the long run, the only lasting consequences are for low-skilled natives who entered the labor force in high-immigration years. A simple quantitative many-region model allows me to obtain the counterfactual local wage evolution absent the immigration shock.

Keywords: Local shocks; International and internal migration; Local labor demand elasticity (search for similar items in EconPapers)
Date: 2015-03
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-01127022
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis (2018)
Working Paper: Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis (2015)
Working Paper: Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis (2015)
Working Paper: Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis (2015)
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