@misc{discovery14266,
          series = {Discussion Paper Series},
           title = {The effects of immigration on U.S. wages and rents: a general equilibrium approach},
           month = {September},
          number = {13/07},
       publisher = {Centre for Research and Analysis of Migration},
            year = {2007},
         address = {London, UK},
          author = {Ottaviano, G. I. P. and Peri, G.},
        abstract = {In this paper we document a strong positive correlation of immigration flows with
changes in average wages and average house rents for native residents across U.S.
states. Instrumental variables estimates reveal that the correlations are compatible
with a causal interpretation from immigration to wages and rents of natives.
Separating the effects of immigrants on natives of different schooling levels we find
positive effects on the wages and rents of highly educated and small effects on the
wages (negative) and rents (positive) of less educated. We propose a model where
natives and immigrants of three different education levels interact in production in a
central district and live in the surrounding region. In equilibrium the inflow of
immigrants has a positive productive effect on natives due to complementarities in
production as well as a positive competition effect on rents. The model calibrated
and simulated with U.S.-states data matches most of the estimated effects of
immigrants on wages and rents of natives in the period 1990-2005. This validation
suggests the proposed model as a useful tool to evaluate the impacts of alternative
immigration scenarios on U.S. wages and rents.},
        keywords = {JEL Classification: F22, J61, R23. Immigration, wages, rents, housing prices, U.S. states},
             url = {http://www.econ.ucl.ac.uk/cream/publicationsdiscussionpapers.htm}
}