ECONOMIC-EFFECTS OF IMMIGRANTS ON NATIVE AND FOREIGN-BORN WORKERS - COMPLEMENTARITY, SUBSTITUTABILITY, AND OTHER CHANNELS OF INFLUENCE

This study uses data constructed from 1980 US census microdata files and other sources to estimate a structural model of native/foreign-born labor demand and labor supply that distinguishes the effects on real wages of each type of labor and on employment of natives. What especially sets the model apart from others is that it specifies, econometrically estimates, and simulates a structural model that incorporates not only a production structure channel through which immigrants influence area real wages and employment, but also demand and native labor supply channels. These are not the only channels through which immigrants might affect native workers. Among other potentially important channels are technological change, agglomeration economies, inflation, balance of payments, remittances, tax and transfer payments, use of public sevices, and externalities. -from Authors