Department of Economics
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Halifax, NS, Canada B3H 4R2
Information about this author at RePEc
NBER Working Papers and Publications
|August 2008||Effects of Low-Skilled Immigration on U.S. Natives: Evidence from Hurricane Mitch|
with Adriana Kugler: w14293
In the 1980s the composition of immigrants to the U.S. shifted towards less-skilled workers. Around this time, real wages and employment of younger and less-educated U.S. workers fell. Some blame recent immigration shifts for the misfortunes of unskilled workers in the U.S. OLS estimates using Census data show instead that native wages are positively related to the recent influx of Latin Americans. However, these estimates are biased if demand shocks are positively related to immigration. An IV strategy, which deals with the endogeneity of immigration by exploiting a large influx of Central American immigrants towards U.S. Southern ports of entry after Hurricane Mitch, also generates positive wage effects but only for more educated native men. Yet, ignoring the flows of native and earlier ...