The effects of monetary policy on immigrants’ unemployment and participation

Esteban Argudo

Economics Letters, 2025, vol. 255, issue C

Abstract: I document that the unemployment rate of both authorized and unauthorized immigrants increases more than that of natives following a surprise monetary contraction. Meanwhile, relative labor force participation decreases for authorized immigrants but increases for unauthorized immigrants. I show that (i) factors beyond differences in educational attainment and concentration in cyclical industries are relevant for explaining the demand-driven increase in immigrants’ relative unemployment, and (ii) the relative increase in unauthorized immigrants’ participation is driven by an “added worker effect.”

Keywords: Immigrants; Monetary policy; Employment; Participation (search for similar items in EconPapers)
JEL-codes: E24 E52 J15 J21 J61 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003696

DOI: 10.1016/j.econlet.2025.112532

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