Employing Non-Citizens to Address Truck Driver Shortages: Is There an Impact on Domestic Driver Wages?

Steven Trick and James Peoples
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Steven Trick: University of Wisconsin-Milwaukee

Journal of Economics, Race, and Policy, 2021, vol. 4, issue 1, No 1, 14 pages

Abstract: Abstract This study examines the effect of noncitizen truck driver employment on the wages of truck drivers who are US citizens. We hypothesize that citizen status job heterogeneity creates a labor market environment that contributes to relatively low wages for these drivers compared to drivers who are US citizens. Findings suggest a significant wage discount for noncitizen truck drivers; however, this discount erodes as these drivers gain experience in the USA. Nonetheless, the noncitizen wage discount persists even when accounting for noncitizen drivers attaining greater years residing in the USA. Findings also suggest that noncitizen truck drivers are imperfect substitutes for truck drivers who are US citizens. This lack of perfect substitutability is consistent with this study’s findings indicating a statistically insignificant negative noncitizen effect on the wages of drivers who are US citizens.

Keywords: Immigration; Job heterogeneity; Trucking industry; Wage effect; Location endogeneity (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s41996-019-00047-9

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