Immigration and Labor Market (Mis)perceptions

Nicolás Ajzenman, Patricio Dominguez and Raimundo Undurraga

AEA Papers and Proceedings, 2022, vol. 112, 402-08

Abstract: Exposure to immigrants often triggers sentiments of hostility and backlash among native-born populations. Among the main concerns identified by surveys, labor market conditions typically rank at the top. We combine a two-way fixed effects model with a Bartik-type 2SLS model to causally estimate the effects of immigration on labor outcomes in Chile, where the foreign-born population almost tripled in five years. While immigration did not systematically affect employment levels, it did cause an increase in unemployment-related concerns. Our results provide a plausible hypothesis to explain the backlash against immigrants: misperception regarding the effect of immigrants on labor market conditions.

JEL-codes: E24 J15 J61 J81 O15 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1257/pandp.20221004

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