Needed but Not Liked – The Impact of Labor Market Policies on Natives’ Opinions about Immigrants

This article builds on the notion that immigrants’ integration into the labor market benefits migrants and shapes natives’ opinions about immigrants. Using insights from the newest literature on labor immigration and drawing upon the literature on attitudes toward immigrants, the article explores in a multilevel design the impact that regulations in the EU member states concerning immigrants’ access to domestic labor markets have on threat perceptions and on opinions about immigrants’ economic role. It finds that labor market regulations have a positive effect on opinions about immigrants’ economic role and reduce the negative relationships between precarious labor market status and opinions about the economic role. However, a robust effect of labor market regulations on threat perceptions was not found. Our results imply that labor market incorporation rules need to be accompanied by other measures to close the gap between natives and immigrants.     

INTERMARRIAGE AND THE LABOR MARKET OUTCOMES OF ASIAN WOMEN

The impact of intermarriage with natives, on labor market outcomes of immigrants, is not homogeneous across ethnic groups. Wages of Asian women are compared with non‐Asians. Both ordinary least squares and instrumental variables estimates of the effects of intermarriage on the wages of Asian women are negative and significant. Non‐Asian women earn a wage premium that becomes insignificant when controls for selection into marriage are introduced. One possible explanation for the intermarriage penalty for Asians is an income effect of having a high‐earning native husband. Intermarriage penalties rise with husband's education. Assimilation patterns of intermarried Asians indicate that they have lower initial wages, market hours, and employment, but exhibit faster rates of growth over their years of stay. The results are robust across Asian subgroups and husband's ethnicity. (JEL J16, J12, J31, J61)     

Is there any merit to the merit-based immigration system? What Sub-Saharan African immigrant labor and housing market outcomes tell us about U.S. economic and immigration systems

For decades, U.S. immigration policy debates have centered on creating a merit-based system limiting entry to high-skilled immigrants. Yet the emphasis on merit-based immigration ignores the fact that high-skilled immigrants already enter the United States in merit-based immigration assume high-skilled immigrants benefit the U.S. economy because they are better able than low-skilled immigrants to translate skills into economic success. Using Sub-Saharan (Black) African immigrants' labor and housing market outcomes, I show that meritocracy only partially explains U.S. labor and housing outcomes, leaving a merit-based system unlikely to address America's economic needs. The majority of immigrants to the U.S. are non-White, and racial discrimination in the labor market results in occupational and wage disadvantages in the U.S. Due to the public charge rule, high skilled immigrants may be less likely to get their visas renewed or green card applications approved because of these labor market disadvantages. Without stable visa status, high-skilled immigrants will be less likely to make long-term economic investments in the United States—an important way of contributing to the U.S. economy. Together, research indicates that U.S. immigration reform will not work without first enacting policy addressing racial disparities in economic systems.     

De facto immigration enforcement,ICE raid awareness,and worker engagement

We explore whether fear of apprehension affects immigrants' labor market engagement by examining how Immigration and Customs Enforcement (ICE) removals due to immigration violations and increased awareness of immigration raids impact their labor market outcomes. We find that ICE deportations are associated with reductions in the labor force participation and employment of likely undocumented immigrants when compared to similarly skilled foreign-born US citizens. Effects are particularly strong among women, especially those with children, as well as in industries likely targeted by ICE raids. Controlling for perceived threats and de jure immigration policies has little impact on these results.     

US and them: Job quality differences between natives and immigrants in Europe

Using microdata from the European Union Labour Force Survey (EU-LFS) and aggregate indicators of labour market institutions, this article compares the job quality of native and non-native workers across European countries and analyses the impact of the institutional settings on the job quality differential between both groups. The LFS is used to measure a job quality index for the period 2005–2017. We find that some immigrant groups fare worse than natives, the contribution of the “composition effect” to explain this differential is large, and the institutional framework affects the immigration gap in job quality. In particular, some labour market institutions (more centralized wage bargaining, stricter employment protection legislation) tend to be detrimental for immigrants relative to natives, while integration policies seem to work well in reducing these differences.     

LABOR MARKET PERFORMANCE EFFECTS OF DISCRIMINATION AND LOSS OF SKILL

We examine the impact of discrimination on labor market performance when workers are subject to a risk of losing skills during an unemployment experience. Within a search and matching framework, we show that both natives and immigrants are affected by discrimination. Discrimination in one sector has positive spillovers, inducing employment to increase in the other sector and the effect on labor market performance therefore depends on whether discrimination is present in only one sector or in both. Discrimination may induce workers to train more or less than natives after having lost their skills, dependent upon in which sector there is discrimination. Net output tends to be most negatively affected by discrimination among high‐skilled workers. (JEL J15, J31, J61, J64, J71)     

The Native‐Immigrant Income Gap among the Self‐Employed in Sweden

During recent years we have observed that non‐western immigrants are overrepresented among the self‐employed in Sweden. A reason for this might be the difficulties faced by immigrants in the labour market. The unemployment rate among non‐western immigrants in Sweden is higher than among natives with similar human capital characteristics. While this is a well‐established result, we do not know much about how self‐employed immigrants perform economically compared to their native counterparts. The purpose of this paper is to describe and analyse the incomes of self‐employed immigrants and natives in Sweden. We will also discuss possible explanations for the income gap we find. We use Swedish register data for the period 1998 to 2002 and the population studied consists of individuals who have been continuously self‐employed during this period. By performing the analysis on this group of self‐employed we get a measure of the difference among the long‐term self‐employed. The outcome of interest is the average income over the period. Income regressions are estimated using both OLS and quantile regressions. We find that self‐employed immigrants receive significantly lower incomes than their native counterparts when controlling for individual characteristics, industry and start‐up year of the firm. The income gap is larger for non‐western immigrants than for western immigrants. Quantile regressions show that the native‐immigrant income gap is smaller at the top than at the bottom of the income distribution. Several possible explanations for the native‐immigrant income gap are discussed. One possible explanation is that immigrants have a lower reservation wage and accepts staying in business receiving a lower income than comparable natives. Another explanation might be that there is discrimination against self‐employed immigrants that will lead to lower incomes. There can be consumer discrimination or discrimination from banks and real estate owners.     

Getting Ahead in the Capitalist Paradise: Migration from China and Socioeconomic Attainment in Colonial Hong Kong1

This article examines the initial labor market outcome and the subsequent mobility process of Chinese immigrants in Colonial Hong Kong using complete work history data and event history modeling. Contrary to the rhetoric that Hong Kong is a capitalist paradise for adventurers, the data showed that immigrants were penalized in their initial class placement, subsequent mobility, and current income attainment. Differences in educational attainment and the lack of transferability of pre‐migration human capital partly explained the attainment gap between immigrants and the natives. Yet the disadvantage of immigrants was also embedded in the local economic structure. The process of deindustrialization significantly lowered the chance of immigrants getting good first jobs when entering the labor market. Moreover, since deindustrialization benefited the natives by providing them with more opportunities in the service sector, it inadvertently widened the gap in upward mobility chances between natives and immigrants.     

The Influence of Attitudes toward Immigrants on International Migration

We investigate whether anti‐immigrant attitudes affect migrant inflows in Organisation for Economic Co‐operation and Development (OECD) countries. Using longitudinal exhaustive data, we find that natives’ hostility, particularly natives’ propensity to discriminate on the labor market, reduces immigration. This effect is comparable to more conventional migration factors. We obtain robust results when we, for example, capture hostility with far‐right parties’ popularity instead and control for tighter immigration policies or multilateral resistance to migration. We find a stronger effect for EU‐to‐EU migrants, migrants from developed countries and linguistically close countries. Our results raise a challenge for policy makers when the demand for foreign workers and anti‐immigrant sentiment are present.     

Immigration and the Structure of Demand: Do Immigrants Alter the Labor Market Composition of U.S. Cities?1

Does the presence of immigrants help determine the types of jobs that exist in American cities and the size of various sectors of these cities' economies? This study explores the relationship between immigration and labor market demand in U.S. metropolitan areas. I employ information about the occupational distribution of recent immigrants as compared to natives to analyze the circumstances under which the two groups are more likely to compete with or complement each other. The findings lend qualified support to Light and Rosenstein's (1995) specific demand hypothesis: many immigrants fill occupational niches that would not exist in their absence. The strength of this conclusion is contingent on city size and immigrants' level of education.     

Exits from Self-Employment: Is There a Native-Immigrant Difference in Sweden?1

It is well established that non-western immigrants in Sweden are more likely to be self-employed than natives. Whether there is also a difference in the exit rate out of self-employment remains an unexplored question. Using panel data for the period 1998–2002, this study analyzes the exit rates by looking at all exits, and also at exits to different labor market states. We find that the exit rate is about 7% points higher among non-western immigrants than among natives and exits to unemployment is 14% points higher. Decomposing these differences, we find that differences in industry and earlier labor market status are important explanatory factors.     

Laboring Underground: The Employment Patterns of Hispanic Immigrant Men in Durham, NC

The dramatic increase in Hispanic immigration to the United States in recent decades has been coterminous with fundamental shifts in the labor market towards heightened flexibility, instability, and informality. As a result, the low-wage labor market is increasingly occupied by Hispanic immigrants, many of whom are undocumented. While numerous studies examine the implications for natives' employment prospects, our understanding of low-wage immigrants themselves remains underdeveloped. Drawing on original data collected in Durham, North Carolina, this article provides a more holistic account of immigrant Hispanic's labor market experiences, examining not only wages but also employment instability and benefit coverage. The analysis evaluates the role of human capital and immigration characteristics, including legal status, in shaping compensation outcomes, as well as the influence of other employment characteristics. Findings highlight the salience of nonstandard work arrangements such as subcontracting and informal employment to the labor market experiences of immigrant Hispanic men, and describe the constellation of risk factors that powerfully bound immigrant employment outcomes. Keywords: Hispanic; immigration; wages; low-wage labor market; employment relations.     

Improved legal status as the major source of earnings premiums associated with intermarriage: evidence from the 1986 IRCA amnesty

Exploiting a natural experiment, this paper uses the 1990 US Census data and the 1986 Immigration Reform and Control Act amnesty to investigate the major mechanism through which intermarriage influences immigrant earnings. My strategy involves comparing international marriage premiums received by two groups of Mexican immigrants who arrived before and after the cutoff date of eligibility. Both groups face similar language and culture related obstacles and have to adapt themselves to the new environment, except that unauthorized Mexican workers who arrived before 1982 could obtain legal status through the amnesty while those who arrived after the cutoff date obtained legal status through marriage to a US citizen. Instrumental variables estimates show a significantly larger intermarriage premium for Mexican immigrants who migrated after the cutoff date and no statistically significant intermarriage premium is found in the pre-1982 group. The 35 % premium gap indicates a large effect of intermarriage on immigrant labor market outcomes, operating primarily through an improvement of legal status.     

The effect of immigration on the earnings of native-born workers: Evidence from Australia

No consensus has been reached by previous studies on the impact of immigration on the earnings of natives. Using data from the Australia's 2001 Census of Population and Housing an individual-level earnings function is estimated by including the fraction of immigrants in a given skill group relative to total employment in that skill group as one of the independent variables. Using employees’ occupation and level of education as proxies for skill, the results indicate that generally immigrants have a significant positive effect on earnings of natives. The overall findings suggest that the increase in supply of labour due to immigration is offset by higher demand for labour and hence positive effect on native earnings.     

Immigration and the Transformation of American Unionism

Does immigration hamper union organizing in the United States? The prevailing literature strongly suggests that it does and for two reasons: first, immigrants increase the labor pool and diminish union influence over the labor market. And second, immigrants may be harder to organize than native workers. In this dominant view, unions are well served to restrict immigration and have always done so. But how, then, to explain the fact that American labor has long been deeply divided over the response to immigration? Drawing on new archival research and interviews, this paper uncovers a neglected side of American labor history in which many union leaders have extended solidarity to immigrants and sought to organize them. Moreover, analysis of time series data on immigration and union density corroborates the implicit theory of this alternate account of labor history: immigration has, in fact, no statistically significant effect – either positive or negative – on union density over time. Depending on specific conditions and strategies, unions can and have been successful in organizing during periods of high immigration.     

Economic achievement of immigrants in Japan: Examining the role of country-of-origin and host-country-specific human capital in an inflexible labor market

The economic integration of immigrants is a salient social issue in Japan. Although the US immigration literature has stressed the importance of host-country-specific human capital over country-of-origin human capital for immigrants, previous studies in Japan have shown mixed results about the effects of these two types of human capital on the economic integration of immigrants. The mixed results might be because previous studies focused on only specific immigrant groups (with regard to nationalities, cities, and visa status), human capital variables, and dimensions of economic achievements in the Japanese labor market. The segmented nature of the Japanese labor market structure and immigration policies create different pathways to “economic achievements” of immigrants depending on the dimension of “economic achievements” studied. By conducting a nationally representative social survey of Japanese immigrants, we examined the association between the two types of human capital (i.e., country-of-origin and host-country-specific) and the three indicators of labor market success: employment status and firm size, occupational status, and income. Our results indicate that host-country-specific human capital in the form of higher education and language proficiency is important for all three indicators of economic achievement in Japan, while country-of-origin human capital in the form of higher education and vocational skills is transferable to some extent. Our results suggest that the significance of human capital in immigrants' economic success is determined not only by the structure of the labor market but also by immigration policies.     

Immigration and Intermarriage Among Hispanics: Crossing Racial and Generational Boundaries1

Rates of Hispanic intermarriage with whites declined for the first time during the 1990s. One hypothesis, which we test here, is that the recent influx of new immigrants has provided an expanding marriage market for Hispanics, reinforced cultural and ethnic identity, and slowed the process of marital assimilation. In this article, we use data from the March Current Population Survey (1995–2008) to identify generational differences in Hispanic‐white intermarriage. The results indicate that second‐generation Hispanics were more likely to marry first‐ rather than third‐generation Hispanics or whites, a pattern that was reinforced over the study period. The results suggest declining rates of intermarriage among second‐generation Hispanics—a pattern that diverges sharply from those observed among third‐plus‐generation Hispanics, where in‐marriage with other Hispanics declined over time. If couched in the language of straight line assimilation theory, third‐plus‐generation Hispanics are assimilating by increasingly marrying other third‐generation co‐ethnics and whites. On the other hand, assimilation among the second‐generation is slowing down as its members increasingly reconnect to their native culture by marrying immigrants.     

IMMIGRATION,SKILL HETEROGENEITY,AND QUALIFICATION MISMATCH

We investigate the effects of U.S. immigration in a comprehensive search and matching framework that allows for skill heterogeneity, imperfect substitutability between skilled and unskilled inputs, different search cost between natives and immigrants, cross‐skill matching, and imperfect transferability of foreign human capital. When we simulate the effects of the U.S. immigration that took place between the years 2000 and 2009, we find that both skilled and unskilled natives, as well as skilled and unskilled immigrants, gain in terms of income and employment. We also investigate the effects of an improvement in the transferability of human capital across borders and find that, although it has some redistributive effects, overall it benefits both immigrants and natives. (JEL F22, J61, J64)     

Asian American Interracial and Interethnic Marriages: Differences by Education and Nativity1

Using the 1990 U.S. census data, we apply log‐linear models to examine Asian Americans' interracial marriage with whites and interethnic marriages between Asian ethnic groups. Japanese and Filipino Americans are most likely to marry whites, followed by Chinese and Korean Americans. Southeast Asian and Asian Indian Americans are least likely to marry whites. We further explore how interracial marriage differs by couples' educational and nativity combinations. The impact of educational attainment, generally, is very strong but is modest for Japanese Americans, the most assimilated group, and for Southeast Asian Americans, the least assimilated group. Interracial marriage is more likely for native than for immigrant couples, but immigrants marrying natives are more likely to marry whites than persons of their own ethnic group. Interethnic marriage between Asian ethnic groups is limited to several ethnic groups, but is much more frequent among natives than among immigrants. Japanese and Chinese Americans, who have lived in the United States for several generations, have the highest rate of interethnic marriage. We have shown two forms of integration for Asian Americans – integration into mainstream society through interracial marriage for both immigrants and natives and integration into Asian American pan‐ethnicity through interethnic marriage for later‐generation natives.     

How Do Migrants Fare in a Post‐Apartheid South African Labor Market?1

South African policies have historically emphasized employment as the reason for immigration. In post‐apartheid South Africa, stories about how “immigrants take away our jobs” abound in the mass media, yet few empirical studies have been undertaken to examine the validity of this claim. This study looks at the relationship between migration status, nativity and labor force outcomes in the post‐apartheid labor market. Our results suggest that migrants are more likely to participate in the labor force and to be gainfully employed than the indigenous population. Foreign migrants enjoy the highest labor force participation rates and employment rates in South Africa. South African‐born internal migrants also have significantly higher labor force outcomes than do nonmigrants.