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The role of immigrants in the United States labor market and Chinese import competition

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  • Yu, Chan

Abstract

Research has shown a limited labor mobility response to trade shocks. However, existing studies of aggregate mobility may miss important heterogeneity. This paper proposes a mechanism through which local labor markets adjust to trade shocks, namely immigrant mobility. I find a relative decline in the immigrant population in areas more exposed to import growth from China. An interquartile increase in Chinese import exposure decreases the immigrant population by 5.4% but has little effect on the native population. Additionally, immigrant mobility mitigates the effects of trade shocks on native labor outcomes. The present study shows that natives in areas with more immigrants experience smaller declines in employment relative to areas with fewer immigrants.

Suggested Citation

  • Yu, Chan, 2023. "The role of immigrants in the United States labor market and Chinese import competition," Journal of International Economics, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:inecon:v:144:y:2023:i:c:s0022199623000788
    DOI: 10.1016/j.jinteco.2023.103792
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    Cited by:

    1. Javed, Mohsin, 2023. "Robots, Natives and Immigrants in US local labor markets," Labour Economics, Elsevier, vol. 85(C).
    2. Anand Chopra & Ronit Mukherji, 2024. "Automation and Local Labour Markets: Impact of Immigrant Mobility," Working Papers 9, University of Liverpool, Department of Economics.
    3. Furtado, Delia & Kong, Haiyang, 2024. "How do low-education immigrants adjust to Chinese import shocks? Evidence using English language proficiency," European Economic Review, Elsevier, vol. 163(C).

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    More about this item

    Keywords

    Trade; Immigrants; Geographic mobility; Manufacturing;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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