The Contribution of Immigration to Local Labor Market Adjustment

Michael Amior

Journal of Labor Economics, 2025, vol. 43, issue 4, 1169 - 1206

Abstract: The United States faces persistent spatial disparities in joblessness, which should theoretically be eliminated by population reallocation. Can immigration accelerate this adjustment process? I estimate that new immigrants account for 40% of local population adjustment since 1960. This vastly exceeds their share of gross migratory flows (just 10%). I attribute their “excess” response to the pull of migrant enclaves, which are disproportionately located in high-employment areas (a consequence of persistent shocks). However, immigration does not significantly accelerate population adjustment overall, as it crowds out the contribution from internal mobility. This crowd-out can help explain the contemporary decline in gross internal flows.

Date: 2025
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