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The Effect of Immigration on Native Workers: Evidence from the US Construct...

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Andrews Conference Room 2203 SS&H | UC Davis

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Zach Rutledge

Ph.D. Student, Agricultural and Resource Economics

Thu, Nov 9, 2017 ~ 12:00pm - 1:00pm
Andrews Conference Room 2203 SS&H | UC Davis

Abstract: We estimate the effects of immigration on the annual income and employment levels of native-born construction workers in the US. We utilize a so-called "imperfect instrument approach" formalized by Nevo & Rosen (2012) which allows us to derive an upper bound for the effects of immigration on native-born workers. Our partial identification strategy relies on the assumptions that the imperfect instrument is less correlated with the error term than is our endogenous regressor, but that the sign of the correlation is the same. We find negative and significant effects which indicate that immigration has had a harmful impact on native-born construction workers in the US. Our estimates are upper bounds which means that the true effects are likely larger than those that we find.

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