Immigration, Local Crowd-Out and Undercoverage Bias
CEP Discussion Papers from Centre for Economic Performance, LSE
Using decadal census data since 1960, I cannot reject the hypothesis that new immigrants crowd out existing residents from US commuting zones and states one-for-one. The effect is entirely driven by a reduction in internal inflows rather than larger outflows. My estimate is precise and robust to numerous specifications, as well as accounting for local dynamics - and I show how it can reconciled with apparently conflicting results in the literature. On imposing more structure, I attribute about 30 percent of the observed effect to mismeasurement - specifically undercoverage of undocumented migrants. Though labor demand does respond, the burden of adjustment falls mostly on population. These results have important methodological implications for the estimation and interpretation of the impact of immigration, both locally and nationally.
Keywords: immigration; geographical mobility; local labor markets; employment (search for similar items in EconPapers)
JEL-codes: J61 J64 R23 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1669
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