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Immigrants, Imports, and Welfare: Evidence from Household Purchase Data

Author

Listed:
  • Brett McCully

    (Collegio Carlo Alberto)

  • Torsten Jaccard

    (Vancouver School of Economics)

  • Christoph Albert

    (Collegio Carlo Alberto)

Abstract

Do immigrants make goods from their origin country more accessible to their non-immigrant neighbors? We augment U.S. grocery scanner data to include the origin country of both households and products, thereby enabling the first direct estimate of how local immigrant presence affects import penetration. Using a quantitative model of trade, we show that immigrants increase the grocery import expenditure share by 8%. Three quarters of this effect is attributable to immigrants’ own disproportionate preferences for imported goods. Immigrants therefore raise import expenditures primarily through their own consumption, with muted benefits for their non-immigrant neighbors. The benefits that do accrue to natives are concentrated within high-income and urban households.

Suggested Citation

  • Brett McCully & Torsten Jaccard & Christoph Albert, 2024. "Immigrants, Imports, and Welfare: Evidence from Household Purchase Data," RF Berlin - CReAM Discussion Paper Series 2417, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:2417
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    More about this item

    Keywords

    Import demand; immigrant preferences; household heterogeneity; spillovereffects;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • 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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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