- New Horizons in Regional Science series
Edited by Peter Nijkamp, Jacques Poot and Mediha Sahin
Chapter 3: The effects of immigration on US wages and rents: a general equilibrium approach*
The literature on the economic impact of immigrants in the US has been mainly focused on native labor market outcomes (Borjas, 2003; Borjas, 2006; Borjas and Katz, 2005; Card, 2009; Ottaviano and Peri, forthcoming). The effects of immigration on local housing prices (Saiz, 2003, 2005) and on the prices of other non-tradable local services (Cortes, 2008) have also been analyzed, but very few studies combine the wage and price effects to evaluate the overall impact of immigrants on the real income of natives. This is what we do in the present chapter. In so doing, we extend previous work of ours (Ottaviano and Peri, 2005 and 2006a) in two complementary directions. First, we analyze the specific impacts of immigration on workers of different educational levels (‘skills’). Second, we model the housing and residential choices of each skill group to study how they are affected by immigration. After a review of the literature on the regional effects of immigration on wages and housing prices, the chapter first presents some new empirical results on the relation between immigration and wages/rents across US metropolitan residents, using census data from 1970 to 2000 and data from the American Community Survey for 2005. This analysis establishes a positive and significant relationship between the net inflow of foreign-born city dwellers and changes in the average wage and rents of natives across US metropolitan areas.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.