Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110118
Authors: 
Monras, Joan
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 8924
Abstract: 
How does the US labor market absorb low-skilled immigration? I address this question using the 1995 Mexican Peso Crisis, an exogenous push factor that raised Mexican migration to the US. In the short run, high-immigration states see their low-skilled labor force increase and native low-skilled wages decrease, with an implied local labor demand elasticity of -.7. Internal relocation dissipates this shock spatially. In the long run, the only lasting consequences are for low-skilled natives who entered the labor force in high-immigration years. A simple quantitative many-region model allows me to obtain the counterfactual local wage evolution absent the immigration shock.
Subjects: 
international and internal migration
local shocks
local labor demand elasticity
JEL: 
F22
J20
J30
Document Type: 
Working Paper

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