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Can Immigration Help Boost Rural Economies in the Fifth District and Beyond

Author

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  • Nicolas Morales

Abstract

We examine the role of immigration in rural areas. While immigrants tend to concentrate in urban areas, rural areas also significantly benefit from immigration. Agricultural firms, for example, need to hire many immigrants to help with harvesting crops. Past restrictions to immigration in rural areas haven't proven to be very effective in boosting native worker employment in these areas. First, firms respond to such restrictions by investing in new technologies at the expense of labor. Also, native workers seem unwilling to take many jobs in rural areas, which makes immigrants particularly valuable to meet labor demand.

Suggested Citation

  • Nicolas Morales, 2022. "Can Immigration Help Boost Rural Economies in the Fifth District and Beyond," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, vol. 22(18), May.
    • Handle: RePEc:fip:fedreb:94331
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    File URL: https://www.richmondfed.org/publications/research/economic_brief/2022/eb_22-18
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