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Unemployed, Now What? The Effect of Immigration on Unemployment Transitions of Native-born Workers in the United States

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  • Fernando Rios-Avila
  • Gustavo Canavire-Bacarreza

Abstract

Although one would expect the unemployed to be the population most likely affected by immigration, most of the studies have concentrated on investigating the effects immigration has on the employed population. Little is known of the effects of immigration on labor market transitions out of unemployment. Using the basic monthly Current Population Survey from 2001–13 we match data for individuals who were interviewed in two consecutive months and identify workers who transition out of unemployment. We employ a multinomial model to examine the effects of immigration on the transition out of unemployment, using state-level immigration statistics. The results suggest that immigration does not affect the probabilities of native-born workers finding a job. Instead, we find that immigration is associated with smaller probabilities of remaining unemployed, but it is also associated with higher probabilities of workers leaving the labor force. This effect impacts mostly young and less educated people.

Suggested Citation

  • Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2016. "Unemployed, Now What? The Effect of Immigration on Unemployment Transitions of Native-born Workers in the United States," Economics Working Paper Archive wp_870, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_870
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    References listed on IDEAS

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    Cited by:

    1. T. Vinayagathasan, 2020. "The Role of Political Stability, Labor Market and Education on Migration: The Empirical Evidence from Sri Lanka," Business and Economic Research, Macrothink Institute, vol. 10(2), pages 372-391, June.
    2. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2016. "The Impact of Immigration on the Native-born Unemployed," Economics Policy Note Archive 16-3, Levy Economics Institute.

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    More about this item

    Keywords

    Immigration; Unemployment Duration; Labor Force Transition;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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