Working Paper
The impact of migration on earnings inequality
Abstract: This paper examines the impact of migration on earnings inequality using 1940?2015 data from the U.S. census and American Community Survey. Despite measurement challenges, I successfully replicate existing findings regarding national trends in earnings inequality and migration, and subsequently analyze regional and state patterns. Using 1940 birthplace information to instrument for migration, I find that recent immigration mildly increases the top decile earnings share, while recent in-migration and out-migration have no significant effects on such inequality. I estimate that immigration contributed 5.8 percent to the observed rise in U.S. earnings inequality from 1950 to 2015, primarily through a non-migrant channel.
Keywords: migration; earnings inequality;
JEL Classification: D31; F22; R23;
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Bibliographic Information
Provider: Federal Reserve Bank of Boston
Part of Series: Working Papers
Publication Date: 2018-08-01
Number: 19-5
Pages: 54 pages