Immigration and Labor Market (Mis)perceptions
- (pp. 402-08)
Abstract
Exposure to immigrants often triggers sentiments of hostility and backlash among native-born populations. Among the main concerns identified by surveys, labor market conditions typically rank at the top. We combine a two-way fixed effects model with a Bartik-type 2SLS model to causally estimate the effects of immigration on labor outcomes in Chile, where the foreign-born population almost tripled in five years. While immigration did not systematically affect employment levels, it did cause an increase in unemployment-related concerns. Our results provide a plausible hypothesis to explain the backlash against immigrants: misperception regarding the effect of immigrants on labor market conditions.Citation
Ajzenman, Nicolás, Patricio Dominguez, and Raimundo Undurraga. 2022. "Immigration and Labor Market (Mis)perceptions." AEA Papers and Proceedings, 112: 402-08. DOI: 10.1257/pandp.20221004Additional Materials
JEL Classification
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J61 Geographic Labor Mobility; Immigrant Workers
- J81 Labor Standards: Working Conditions
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration