Cross-Country Variation in the Impact of International Migration: Canada, Mexico, and the United States

Abdurrahman Aydemir and George Borjas

Journal of the European Economic Association, 2007, vol. 5, issue 4, 663-708

Abstract: Using data drawn from the Canadian, Mexican, and U.S. censuses, we find a numerically comparable and statistically significant inverse relation between immigrant-induced shifts in labor supply and wages in each of the three countries: A 10% labor supply shift is associated with a 3%-4% opposite-signed change in wages. Despite the similarity in the wage response, the impact of migration on the wage structure differs significantly across countries. International migration narrowed wage inequality in Canada; increased it in the United States; and reduced the relative wage of workers at the bottom of the skill distribution in Mexico. (JEL: J31, J61) (c) 2007 by the European Economic Association.

Date: 2007
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