Immigration and wage dynamics: Evidence from the Mexican Peso crisis
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- dc.contributor.author Monràs, Joan
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:10:13Z
- dc.date.available 2024-11-14T10:10:13Z
- dc.date.issued 2019-08-28
- dc.date.modified 2024-11-14T10:07:17Z
- dc.description.abstract How does the US labor market absorb low-skilled immigration? I address this question using the 1995 Mexican Peso Crisis, an exogenous push factor that raised Mexican migration to the US. In the short run, high-immigration locations see their low-skilled labor force increase and native low-skilled wages decrease, with an implied inverse local labor demand elasticity of at least -.7. Mexican immigration also leads to an increase in the relative price of rentals. Internal relocation dissipates this shock spatially. In the long run, the only lasting consequences are a) lower wages and employment rates for low-skilled natives who entered the labor force in high-immigration years, and b) lower housing prices in high-immigrant locations, since Mexican immigrant workers disproportionately enter the construction sector and lower construction costs. I use a quantitative dynamic spatial equilibrium many-region model to obtain the counterfactual local wage evolution absent the immigration shock, to study the role of local technology adoption in generating wage dynamics, to analyze the role of unilateral state level immigrant restrictive laws, and to study the role of housing markets
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1745
- dc.identifier.citation Journal of Political Economy vol. 128 (8), August 2020
- dc.identifier.uri http://hdl.handle.net/10230/68679
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1745
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword international and internal migration
- dc.subject.keyword local shocks
- dc.subject.keyword local labor demand elasticity
- dc.subject.keyword local housing markets.
- dc.title Immigration and wage dynamics: Evidence from the Mexican Peso crisis
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper