eprintid: 14266
rev_number: 27
eprint_status: archive
userid: 600
dir: disk0/00/01/42/66
datestamp: 2009-03-25 11:24:12
lastmod: 2015-07-19 02:07:17
status_changed: 2009-03-25 11:24:12
type: working_paper
metadata_visibility: show
creators_name: Ottaviano, G.I.P.
creators_name: Peri, G.
title: The effects of immigration on U.S. wages and rents: a general equilibrium approach
ispublished: pub
subjects: 12040
keywords: JEL Classification: F22, J61, R23. Immigration, wages, rents, housing prices, U.S. states
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.
date: 2007-09
publisher: Centre for Research and Analysis of Migration
official_url: http://www.econ.ucl.ac.uk/cream/publicationsdiscussionpapers.htm
oa_status: green
language: eng
primo: open
primo_central: open_green
full_text_status: public
series: Discussion Paper Series
number: 13/07
place_of_pub: London, UK
citation:        Ottaviano, G.I.P.;    Peri, G.;      (2007)    The effects of immigration on U.S. wages and rents: a general equilibrium approach.                    (Discussion Paper Series  13/07). Centre for Research and Analysis of Migration: London, UK.       Green open access   
 
document_url: https://discovery.ucl.ac.uk/id/eprint/14266/1/14266.pdf