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The Effect of Immigration on Labor Market Transitions of Native-Born Unemployed in the United States

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  • Fernando Rios-Avila

    (Levy Economics Institute of Bard College)

  • Gustavo Canavire-Bacarreza

    (Universidad Privada Boliviana)

Abstract

Unemployed workers are the group most likely to be affected by the presence of immigrants in their local labor markets since they are actively competing for job opportunities. Yet, little is known about the effect of immigration on labor market opportunities of the unemployed. Using a sample of unemployed native-born citizens from the monthly Current Population Survey from 2001 to 2015 and state level immigration statistics, we employ a multinomial model in the framework of a discrete hazard model with competing risks to examine the effects of immigration on the transition out of unemployment. The results suggest that immigration does not affect attrition not the probabilities of native-born workers finding a job. Instead, we find that immigration is associated with smaller probabilities of remaining unemployed.

Suggested Citation

  • Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2020. "The Effect of Immigration on Labor Market Transitions of Native-Born Unemployed in the United States," Journal of Labor Research, Springer, vol. 41(3), pages 295-331, September.
    • Handle: RePEc:spr:jlabre:v:41:y:2020:i:3:d:10.1007_s12122-020-09304-5
    DOI: 10.1007/s12122-020-09304-5
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    1. Michael A. Clemens, 2021. "The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates," RF Berlin - CReAM Discussion Paper Series 2134, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).

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