Relative Wages of Immigrant Men and the Great Recession

Fahad Gill () and Abdihafit Shaeye ()
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Fahad Gill: West Virginia University (Tech.)
Abdihafit Shaeye: Kent State University

Journal of Economics, Race, and Policy, 2022, vol. 5, issue 1, No 1, 12 pages

Abstract: Abstract Using CPS data from 2007 to 2012, we examine the contemporaneous effect of the Great Recession on the relative wages of immigrant men. Compared to pre-recession period, immigrants see a modest decline in their relative wages during the recession regardless of model specification. After the recession, immigrants’ relative wages largely recover from the recession-induced decline, but the wage disadvantage does not completely revert back to its pre-recession level. Selective in- and out-migration by immigrants or selection of natives into employment do not seem to drive the results. It appears that, during the recession, immigrants may have traded higher employment with lower wages and employers might have been willing to hire them as a cost-saving measure. The results could have implications for how relative wages of immigrants respond to the ongoing COVID-19 Pandemic Recession.

Keywords: Immigrants; Relative wages; Recession; Reservation wage (search for similar items in EconPapers)
JEL-codes: J1 J3 J6 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s41996-020-00067-w

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