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Book How Low skilled Immigration is Changing US Prices and Labor Markets

Download or read book How Low skilled Immigration is Changing US Prices and Labor Markets written by Patricia Cortes (Ph. D.) and published by . This book was released on 2006 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: (cont.) Using data from the Occupation Information Network and the Census, I find that: (1) within a city, occupations that require fewer language skills have a higher ratio of low-skilled immigrants to natives, and (2) after an immigration shock, there is a disproportional reduction in the wages of natives that work in manual occupations.

Book The Economic and Fiscal Consequences of Immigration

Download or read book The Economic and Fiscal Consequences of Immigration written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2017-07-13 with total page 643 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Economic and Fiscal Consequences of Immigration finds that the long-term impact of immigration on the wages and employment of native-born workers overall is very small, and that any negative impacts are most likely to be found for prior immigrants or native-born high school dropouts. First-generation immigrants are more costly to governments than are the native-born, but the second generation are among the strongest fiscal and economic contributors in the U.S. This report concludes that immigration has an overall positive impact on long-run economic growth in the U.S. More than 40 million people living in the United States were born in other countries, and almost an equal number have at least one foreign-born parent. Together, the first generation (foreign-born) and second generation (children of the foreign-born) comprise almost one in four Americans. It comes as little surprise, then, that many U.S. residents view immigration as a major policy issue facing the nation. Not only does immigration affect the environment in which everyone lives, learns, and works, but it also interacts with nearly every policy area of concern, from jobs and the economy, education, and health care, to federal, state, and local government budgets. The changing patterns of immigration and the evolving consequences for American society, institutions, and the economy continue to fuel public policy debate that plays out at the national, state, and local levels. The Economic and Fiscal Consequences of Immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the United States, a major destination of world population movements. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the general public, nongovernmental organizations, the business community, educational institutions, and the research community.

Book Impact of Low Skilled Immigration on the Youth Labor Market

Download or read book Impact of Low Skilled Immigration on the Youth Labor Market written by Christopher L. Smith and published by DIANE Publishing. This book was released on 2011 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a print on demand edition of a hard to find publication. The employment-to-population rate of high-school aged youth has fallen by about 20 percentage points since the late 1980s. Growth in the number of less-educated immigrants reduced youth employment rates. Previous research had identified a modest negative relationship between immigration levels and adult labor market outcomes. Two factors are at work: there is greater overlap between the jobs that youth and less-educated adult immigrants do, and youth labor supply is more responsive to immigration-induced changes in their wage. Reduced employ. rates are not associated with higher earnings 10 years later in life. There is a possibility that an immigration-induced reduction in youth employment hinders youths' human capital accumulation.

Book From the Farm to the City

    Book Details:
  • Author : Zachariah Judson Rutledge
  • Publisher :
  • Release : 2020
  • ISBN :
  • Pages : 0 pages

Download or read book From the Farm to the City written by Zachariah Judson Rutledge and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past few decades, the United States (U. S.) has experienced a massive influx of low-skilled immigrants. Between 1990 and 2018, the total immigrant population increased from 20 million (8% of the population) to 45 million (14% of the population). However, not all low-skilled sectors of the economy have consistently experienced positive immigrantlabor supply shocks. For example, recent evidence suggests that the agricultural sector has experienced a decline in the supply of immigrant workers. Mexican and Central American immigrants are by far the largest group of low-skilled immigrants in the U. S., comprising half of the immigrant population with a high school education or less. About 80% of Mexican and Central American immigrants have at most a high school diploma, and they are typically employed in low-skilled sectors of the economy, such as agriculture and construction. Estimates suggest that 11 million unauthorized immigrants reside in the U. S., 8 million of whom are Mexican and Central American. The issue of unauthorized immigration has led to a contentious debate, driving a wedge between Americans. Opponents of immigration argue that these immigrants take American jobs, depress the wages of native-born workers (natives), and drain resources from the social welfare system. Proponents argue that these immigrants take low-paying, physically demanding jobs that Americans don't want, which reduces the cost of goods and services, and that immigrants often contribute to the tax base even if they are unauthorized to work. Economists have failed to come to a consensus on the debate, partly because it is difficult to find empirical settings that lend themselves to producing exogenous variation in the supply of immigrants. It is plausible that elements on both sides of the debate are valid to some extent, depending on the outcome of interest and the economic sector under consideration. In this dissertation, I examine how changes in the supply of low-skilled immigrants affect various outcomes in the U. S. and the extent to which these immigrants have been able to achieve economic success. The first chapter examines how a decline in the supply of immigrant farmworkers impacts labor-intensive crop production in the state of California. The second chapter investigates how increased immigration impacts native workers in non-farm sectors of the economy. The third chapter documents the extent to which Mexicans and Central Americans have been able to close the earnings and employment rate gap (relative to native workers) over time. As a whole, this dissertation sheds light on how low-skilled immigration creates winners and losers and documents the extent to which immigrants have been successful in assimilating into the U. S. labor market. Chapter 1 extends the existing farm labor literature, which has found evidence of a declining farm labor supply, by quantifying the impacts such changes have on labor-intensive crop production. Specifically, I provide reduced-form estimates of the effects of shifts in the farm labor supply on the production of hand-harvested fruits and vegetables. Using crop production and employment data from California between 1990 and 2017, I estimate fixed-effects panel regressions linking farm employment (measured at the county-year level) to crop production outcomes (measured at the crop-county-year level). Because I use variation in equilibrium employment, as opposed to exogenous variation in the labor supply, I use an equilibrium displacement model to identify plausible sources of bias that may affect my empirical estimates. This exercise reveals that my point estimates should be interpreted as upper bounds for the effects of interest. Empirically, these bounds indicate that a one percent decrease in the farm labor supply (in terms of the number of workers) causes at most a 0.37% reduction in production in the top 10 producing counties, which together produce 86% of the total value of hand-harvested crops in the state. Production effects are channeled primarily through a reduction in harvested acreage, although there are some effects on yield. I also find that a 1% decrease in the labor supply causes at most a 0.46% decrease in the total value of hand-harvested crop production in the top 5 producing counties (or $600 million). The results from this chapter indicate that a declining farm labor supply could generate economically meaningful consequences for farmers, but that it will likely not devastate the aggregate production of fruits and vegetables in the near future. Chapter 2 analyzes the impact of immigration on the labor market outcomes of native workers in the U. S. The analysis focuses on workers in U. S. metropolitan statistical areas using U. S. Census and American Community Survey data between 1990 and 2011. We use a set of imperfect instruments to derive new bounds on the short-run impacts ofimmigration on the earnings, employment rate, and full-time employment rate of natives. We focus on nine sectors with higher immigrant penetration and instrument for the sectoral immigrant share using the immigrant share in all other sectors. We find negative effects of immigration on native earnings in sectors where we would most expect to findthem: low-skilled sectors that produce non-traded goods where immigrant penetration has been high in recent decades. We uncover negative effects on native earnings in the construction, food service, and personal service sectors, with upper bounds ranging from -2.9% to -6.6% for each 10 percentage point increase in the immigrant share. Earnings effects in other sectors are not statistically significant. In the six low-skilled sectors we consider, immigration reduces the native employment rate, with effects ranging from -0.6 to -2.0 percentage points for each 10 percentage point increase in the immigrant share. Our findings indicate that increases in the low-skilled immigrant labor supply lead to worse labor market outcomes for some low-skilled native workers in the short run. Chapter 3 investigates whether recently arrived low-skilled immigrants have been more successful than older cohorts at assimilating into the U. S. labor market. Specifically, we use U. S. Census and American Community Survey data between 1970 and 2017 to examine how different Mexican and Central American cohorts of arrival compare to similarly aged and educated natives in terms of their earnings and employment rate over time. We find that, on average, they started with an earnings gap of 40-45 percent and eliminated half of it within 20 years of arrival. Recent cohorts that arrived after 1995 did better than earlier cohorts in terms of the initial gap and the convergence rate. All cohorts achieved employment rates that surpassed that of natives within 20 years of arrival. The most recent cohorts arrived in the U. S. with no employment rate gap. We conclude that Mexican and Central American immigrants enter the U. S. with a strong proclivity toward being employed. However, despite their successful integration into the labor market in terms of achieving gainful employment, they have not reached parity with their native counterparts in terms of earnings.

Book The Economics of Immigration

Download or read book The Economics of Immigration written by Cynthia Bansak and published by Routledge. This book was released on 2015-04-24 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economics of Immigration provides students with the tools needed to examine the economic impact of immigration and immigration policies over the past century. Students will develop an understanding of why and how people migrate across borders and will learn how to analyze the economic causes and effects of immigration. The main objectives of the book are for students to understand the decision to migrate; to understand the impact of immigration on markets and government budgets; and to understand the consequences of immigration policies in a global context. From the first chapter, students will develop an appreciation of the importance of immigration as a separate academic field within labor economics and international economics. Topics covered include the effect of immigration on labor markets, housing markets, international trade, tax revenues, human capital accumulation, and government fiscal balances. The book also considers the impact of immigration on what firms choose to produce, and even on the ethnic diversity of restaurants and on financial markets, as well as the theory and evidence on immigrants’ economic assimilation. The textbook includes a comparative study of immigration policies in a number of immigrant-receiving and sending countries, beginning with the history of immigration policy in the United States. Finally, the book explores immigration topics that directly affect developing countries, such as remittances, brain drain, human trafficking, and rural-urban internal migration. Readers will also be fully equipped with the tools needed to understand and contribute to policy debates on this controversial topic. This is the first textbook to comprehensively cover the economics of immigration, and it is suitable both for economics students and for students studying migration in other disciplines, such as sociology and politics.

Book The Once and Future Worker

Download or read book The Once and Future Worker written by Oren Cass and published by Encounter Books. This book was released on 2018-11-13 with total page 247 pages. Available in PDF, EPUB and Kindle. Book excerpt: “[Cass’s] core principle—a culture of respect for work of all kinds—can help close the gap dividing the two Americas....” – William A. Galston, The Brookings Institution The American worker is in crisis. Wages have stagnated for more than a generation. Reliance on welfare programs has surged. Life expectancy is falling as substance abuse and obesity rates climb. These woes are not the inevitable result of irresistible global and technological forces. They are the direct consequence of a decades-long economic consensus that prioritized increasing consumption—regardless of the costs to American workers, their families, and their communities. Donald Trump’s rise to the presidency focused attention on the depth of the nation’s challenges, yet while everyone agrees something must change, the Left’s insistence on still more government spending and the Right’s faith in still more economic growth are recipes for repeating the mistakes of the past. In this groundbreaking re-evaluation of American society, economics, and public policy, Oren Cass challenges our basic assumptions about what prosperity means and where it comes from to reveal how we lost our way. The good news is that we can still turn things around—if the nation’s proverbial elites are willing to put the American worker’s interests first. Which is more important, pristine air quality, or well-paying jobs that support families? Unfettered access to the cheapest labor in the world, or renewed investment in the employment of Americans? Smoothing the path through college for the best students, or ensuring that every student acquires the skills to succeed in the modern economy? Cutting taxes, expanding the safety net, or adding money to low-wage paychecks? The renewal of work in America demands new answers to these questions. If we reinforce their vital role, workers supporting strong families and communities can provide the foundation for a thriving, self-sufficient society that offers opportunity to all.

Book Changing the Nation

    Book Details:
  • Author : Tara Misti Stryker
  • Publisher :
  • Release : 2000
  • ISBN :
  • Pages : 108 pages

Download or read book Changing the Nation written by Tara Misti Stryker and published by . This book was released on 2000 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book The New Americans

    Book Details:
  • Author : Panel on the Demographic and Economic Impacts of Immigration
  • Publisher : National Academies Press
  • Release : 1997-10-28
  • ISBN : 0309521424
  • Pages : 449 pages

Download or read book The New Americans written by Panel on the Demographic and Economic Impacts of Immigration and published by National Academies Press. This book was released on 1997-10-28 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book sheds light on one of the most controversial issues of the decade. It identifies the economic gains and losses from immigration--for the nation, states, and local areas--and provides a foundation for public discussion and policymaking. Three key questions are explored: What is the influence of immigration on the overall economy, especially national and regional labor markets? What are the overall effects of immigration on federal, state, and local government budgets? What effects will immigration have on the future size and makeup of the nation's population over the next 50 years? The New Americans examines what immigrants gain by coming to the United States and what they contribute to the country, the skills of immigrants and those of native-born Americans, the experiences of immigrant women and other groups, and much more. It offers examples of how to measure the impact of immigration on government revenues and expenditures--estimating one year's fiscal impact in California, New Jersey, and the United States and projecting the long-run fiscal effects on government revenues and expenditures. Also included is background information on immigration policies and practices and data on where immigrants come from, what they do in America, and how they will change the nation's social fabric in the decades to come.

Book Immigrants in a Changing Labor Market

Download or read book Immigrants in a Changing Labor Market written by Michael Fix and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume, which brings together research by leading economists and labor market specialists, examines the role immigrants play in the U.S. workforce, how they fare in good and bad economic times, and the effects they have on native-born workers and the labor sectors in which they are engaged. The book traces the powerful economic forces at play in today's globalized world and includes policy prescriptions for making the American immigration system more responsive to labor market needs. Chapters examine employment outcomes for low-skilled, middle-skilled, and high-skilled workers; assess the economic effects of illegal immigration; trace immigrants' trajectories in the construction, health care, hospitality, and information technology sectors; and detail the impact of immigration in recession and economic expansion. "Immigrants in a Changing Labor Market "is the product of the Migration Policy Institute's (MPI) Labor Markets Initiative, which provides a comprehensive, policy-focused review of the role of immigration in the labor market. The initiative produces detailed policy recommendations on how the United States should rethink its immigration policy in the light of what is known about the economic impact of immigration--bearing in mind the current context of the economic crisis, growing income inequality, concerns about the effect of globalization on U.S. competitiveness, the competition for highly skilled migrants, and demographic and technological change. Contributors include: Jeanne Batalova (MPI), Michael Fix (MPI), Gordon H. Hanson (University of California-San Diego), Harry J. Holzer (Georgetown Public Policy Institute), Pia M. Orrenius (Federal Reserve Bank of Dallas), Demetrios G. Papademetriou (MPI), Giovanni Peri (University of California-Davis), Madeleine Sumption (MPI), and Madeline Zavodny (Institute for the Study of Labor (IZA))

Book High Skilled Migration to the United States and Its Economic Consequences

Download or read book High Skilled Migration to the United States and Its Economic Consequences written by Gordon H. Hanson and published by University of Chicago Press. This book was released on 2018-06-15 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: Immigration policy is one of the most contentious public policy issues in the United States today. High-skilled immigrants represent an increasing share of the U.S. workforce, particularly in science and engineering fields. These immigrants affect economic growth, patterns of trade, education choices, and the earnings of workers with different types of skills. The chapters in this volume go beyond the traditional question of how the inflow of foreign workers affects native employment and earnings to explore effects on innovation and productivity, wage inequality across skill groups, the behavior of multinational firms, firm-level dynamics of entry and exit, and the nature of comparative advantage across countries.

Book Immigration and the Work Force

Download or read book Immigration and the Work Force written by George J. Borjas and published by University of Chicago Press. This book was released on 2007-12-01 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 1970s, the striking increase in immigration to the United States has been accompanied by a marked change in the composition of the immigrant community, with a much higher percentage of foreign-born workers coming from Latin America and Asia and a dramatically lower percentage from Europe. This timely study is unique in presenting new data sets on the labor force, wage rates, and demographic conditions of both the U.S. and source-area economies through the 1980s. The contributors analyze the economic effects of immigration on the United States and selected source areas, with a focus on Puerto Rico and El Salvador. They examine the education and job performance of foreign-born workers; assimilation, fertility, and wage rates; and the impact of remittances by immigrants to family members on the overall gross domestic product of source areas. A revealing and original examination of a topic of growing importance, this book will stand as a guide for further research on immigration and on the economies of developing countries.

Book High skilled Immigration in a Global Labor Market

Download or read book High skilled Immigration in a Global Labor Market written by Barry R. Chiswick and published by A E I Press. This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent U.S. immigration reform proposals have focused almost exclusively on regulating the population of low-skilled foreign workers. But the United States is increasingly falling behind other developed nations in science, technology, and economic growth. If the country is to remain competitive in the international economy, policymakers must make high-skilled immigration a priority. High-Skilled Immigration in a Global Labor Market examines policies designed to attract and cultivate immigrants with exclusive skill sets-scientific, technical, engineering, and management (STEM) workers with advanced degrees, extensive technical training, and strong entrepreneurial skills. Because these workers are more likely than low-skilled immigrants to obtain high-salaried, full-time jobs, they tend to pay more in taxes than they receive in public benefits. Therefore, adding STEM workers to the labor force results in a positive net fiscal balance-in contrast to the negative fiscal impact of low-skilled immigration. High-skilled foreign workers also boost the U.S. economy by expanding production capability, increasing output per capita, and attracting foreign capital investments. STEM workers are in high demand in today's international labor market. Canada, Australia, New Zealand, and many countries in Western Europe have adopted policies designed to attract and efficiently employ high-skilled workers. The United States, however, remains mired in legislative battles over family-based and low-skilled immigration. Barry R. Chiswick and his fellow contributors contend that U.S. policymakers must act now to add immigrant STEM workers to the American labor force-or risk falling behind in the global economy. Book jacket.

Book Immigration  Poverty  and Socioeconomic Inequality

Download or read book Immigration Poverty and Socioeconomic Inequality written by David Card and published by Russell Sage Foundation. This book was released on 2013-07-31 with total page 484 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rapid rise in the proportion of foreign-born residents in the United States since the mid-1960s is one of the most important demographic events of the past fifty years. The increase in immigration, especially among the less-skilled and less-educated, has prompted fears that the newcomers may have depressed the wages and employment of the native-born, burdened state and local budgets, and slowed the U.S. economy as a whole. Would the poverty rate be lower in the absence of immigration? How does the undocumented status of an increasing segment of the foreign-born population impact wages in the United States? In Immigration, Poverty, and Socioeconomic Inequality, noted labor economists David Card and Steven Raphael and an interdisciplinary team of scholars provide a comprehensive assessment of the costs and benefits of the latest era of immigration to the United States Immigration, Poverty, and Socioeconomic Inequality rigorously explores shifts in population trends, labor market competition, and socioeconomic segregation to investigate how the recent rise in immigration affects economic disadvantage in the United States. Giovanni Peri analyzes the changing skill composition of immigrants to the United States over the past two decades to assess their impact on the labor market outcomes of native-born workers. Despite concerns over labor market competition, he shows that the overall effect has been benign for most native groups. Moreover, immigration appears to have had negligible impacts on native poverty rates. Ethan Lewis examines whether differences in English proficiency explain this lack of competition between immigrant and native-born workers. He finds that parallel Spanish-speaking labor markets emerge in areas where Spanish speakers are sufficiently numerous, thereby limiting the impact of immigration on the wages of native-born residents. While the increase in the number of immigrants may not necessarily hurt the job prospects of native-born workers, low-skilled migration appears to suppress the wages of immigrants themselves. Michael Stoll shows that linguistic isolation and residential crowding in specific metropolitan areas has contributed to high poverty rates among immigrants. Have these economic disadvantages among low-skilled immigrants increased their dependence on the U.S. social safety net? Marianne Bitler and Hilary Hoynes analyze the consequences of welfare reform, which limited eligibility for major cash assistance programs. Their analysis documents sizable declines in program participation for foreign-born families since the 1990s and suggests that the safety net has become less effective in lowering child poverty among immigrant households. As the debate over immigration reform reemerges on the national agenda, Immigration, Poverty, and Socioeconomic Inequality provides a timely and authoritative review of the immigrant experience in the United States. With its wealth of data and intriguing hypotheses, the volume is an essential addition to the field of immigration studies. A Volume in the National Poverty Center Series on Poverty and Public Policy

Book The Effect of Low Skilled Immigration on Us Prices

Download or read book The Effect of Low Skilled Immigration on Us Prices written by Patricia Cortes and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: While an extensive literature examines the impact of low-skilled immigration on US native wages, there has been almost no research on the parallel question of how immigration affects the price of goods and services. A standard small open economy model suggests that low-skilled immigration should reduce the relative price of non-traded goods by decreasing the wages of low-skilled workers. Treating US cities as small open economies and using confidential price data on goods and services to estimate reduced-form price effects, I find that, at current immigration levels, a 10 percent increase in the share of low-skilled immigrants in the labor force decreases the price of immigrant-intensive services, such as housekeeping and gardening, by 1.3 percent and of other non-traded goods by 0.2 percent. Structural estimates suggest that lower wages are a likely channel through which these effects take place. However, wage effects are significantly larger for low-skilled immigrants than for low-skilled natives because the two are imperfect substitutes. Overall, the results imply that the low-skilled immigration wave of the 1990s increased the purchasing power of high-skilled natives living in the 25 largest cities by 0.65 percent but decreased the purchasing power of native high school dropouts by 2.66 percent.

Book Immigration  Trade  and the Labor Market

Download or read book Immigration Trade and the Labor Market written by John M. Abowd and published by University of Chicago Press. This book was released on 2007-12-01 with total page 446 pages. Available in PDF, EPUB and Kindle. Book excerpt: Are immigrants squeezing Americans out of the work force? Or is competition wth foreign products imported by the United States an even greater danger to those employed in some industries? How do wages and unions fare in foreign-owned firms? And are the media's claims about the number of illegal immigrants misleading? Prompted by the growing internationalization of the U.S. labor market since the 1970s, contributors to Immigration, Trade, and the Labor Market provide an innovative and comprehensive analysis of the labor market impact of the international movements of people, goods, and capital. Their provocative findings are brought into perspective by studies of two other major immigrant-recipient countries, Canada and Australia. The differing experiences of each nation stress the degree to which labor market institutions and economic policies can condition the effect of immigration and trade on economic outcomes Contributors trace the flow of immigrants by comparing the labor market and migration behavior of individual immigrants, explore the effects of immigration on wages and employment by comparing the composition of the work force in local labor markets, and analyze the impact of trade on labor markets in different industries. A unique data set was developed especially for this study—ranging from an effort to link exports/imports with wages and employment in manufacturing industries, to a survey of illegal Mexican immigrants in the San Diego area—which will prove enormously valuable for future research.

Book Tradability and the Labor Market Impact of Immigration

Download or read book Tradability and the Labor Market Impact of Immigration written by Ariel T. Burstein and published by . This book was released on 2017 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we show that labor-market adjustment to immigration differs across tradable and nontradable occupations. Theoretically, we derive a simple condition under which the arrival of foreign-born labor crowds native-born workers out of (or into) immigrant-intensive jobs, thus lowering (or raising) relative wages in these occupations, and explain why this process differs within tradable versus within nontradable activities. Using data for U.S. commuting zones over the period 1980 to 2012, we find that consistent with our theory a local influx of immigrants crowds out employment of native-born workers in more relative to less immigrant-intensive nontradable jobs, but has no such effect within tradable occupations. Further analysis of occupation wage bills is consistent with adjustment to immigration within tradables occurring more through changes in output (versus changes in prices) when compared to adjustment within nontradables, thus confirming the theoretical mechanism behind differential crowding out between the two sets of jobs. We then build on these insights to construct a quantitative framework to evaluate the consequences of counterfactual changes in U.S. immigration. Reducing inflows from Latin America, which tends to send low-skilled immigrants to specific U.S. regions, raises local wages for native-born workers in more relative to less-exposed nontradable occupations by much more than for similarly differentially exposed tradable jobs. By contrast, increasing the inflow of high-skilled immigrants, who are not so concentrated geographically, causes tradables and nontradables to adjust in a more similar fashion. For the nontradable-tradable distinction in labor-market adjustment to be manifest, as we find to be the case in our empirical analysis, regional economies must vary in their exposure to an immigration shock.