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Working Paper
Immigration and outsourcing: a general equilibrium analysis

We analyze the effects of outsourcing in the presence of a minimum wage by presenting a general-equilibrium model with an oligopolistic export sector and a competitive import-competing sector. An outsourcing tax is politically popular because it switches jobs to unemployed natives. It is also economically sound because it raises national income. An export subsidy may or may not be justified on welfare grounds. Increased international competition has no effect on the level of outsourcing, but the direction of its effect on unemployment and national income depends on the relative factor ...
Working Papers , Paper 2005-058

Working Paper
Nash equilibrium tariffs and illegal immigration: an analysis of preferential trade liberalization

We use a version of the small-union Meade model to consider the effects of interdependent import tariffs in the presence illegal immigration. First, we analyze the condition under which illegal immigration is likely to increase (or decrease) in response to reciprocal trade liberalization between the source and host nations (of illegal immigration). Next we describe the Nash equilibrium in tariffs between these nations and discus how a liberalization of tariffs starting from this Nash equilibrium is likely to affect their utility. Finally, we consider the effect of the host nation's ...
Working Papers , Paper 2007-021

Working Paper
Foreign aid, illegal immigration, and host country welfare

This paper analyzes the effect of foreign aid on illegal immigration and host country welfare using a general equilibrium model. We show that foreign aid may worsen the recipient nation?s terms of trade. Furthermore, it may also raise illegal immigration, if the terms of trade effect on immigration flows dominates the other effects identified in our analysis. Empirical analysis of the effect of foreign aid on illegal immigration to the United States broadly supports the predictions of our theoretical model. Foreign aid worsens the recipient?s terms of trade. While the terms of trade effect ...
Working Papers , Paper 2012-007

Working Paper
Immigration, skill mix, and the choice of technique

Using detailed plant-level data from the 1988 and 1993 Surveys of Manufacturing Technology, this paper examines the impact of skill mix in U.S. local labor markets on the use and adoption of automation technologies in manufacturing. The level of automation differs widely across U.S. metropolitan areas. In both 1988 and 1993, in markets with a higher relative availability of less skilled labor, comparable plants ? even plants in the same narrow (4-digit SIC) industries ? used systematically less automation. Moreover, between 1988 and 1993 plants in areas experiencing faster less-skilled ...
Working Papers , Paper 05-8

Working Paper
Immigration and the neighborhood

What impact does immigration have on neighborhood dynamics? Within metropolitan areas, the authors find that housing values have grown relatively more slowly in neighborhoods of immigrant settlement. They propose three nonexclusive explanations: changes in housing quality, reverse causality, or the hypothesis that natives find immigrant neighbors relatively less attractive (native flight). To instrument for the actual number of new immigrants, the authors deploy a geographic diffusion model that predicts the number of new immigrants in a neighborhood using lagged densities of the foreign-born ...
Working Papers , Paper 06-22

Working Paper
How did the Miami labor market absorb the Mariel immigrants?

Card's (1990) well-known analysis of the Mariel boatlift concluded that this mass influx of mostly less-skilled Cubans to Miami had little impact on the labor market outcomes of the city's less-skilled workers. This paper evaluates two explanations for this. First, consistent with an open-economy framework, this paper asks whether after the boatlift, Miami increased its production of unskilled-intensive manufactured goods, allowing it to "export" the impact of the boatlift. Second, this paper asks whether Miami adapted to the boatlift by implementing new skill-complementary technologies ...
Working Papers , Paper 04-3

Journal Article
The new New Englanders

Regional Review , Issue Win , Pages 12-18

Journal Article
Snapshot of the future: the children of immigrant America

Regional Review , Volume 8 , Issue Q 3 , Pages 18-24

Working Paper
Institutional quality and financial market development: evidence from international migrants in the U.S.

A growing body of theoretical and empirical work identifies the ability of a country?s institutions to protect private property and provide incentives for investment as a key explanation for the persistent disparity in financial market development. We add to this literature by analyzing the impact of institutions on financial development using data on the financial decisions of immigrants and the native-born in the U.S. While all of the individuals whose decisions we analyze face the same formal institutional framework in the U.S., immigrants bring with them varied experiences with ...
Working Paper Series , Paper WP-04-19

Working Paper
Remittance behavior among new U.S. immigrants

I analyze remittance behavior among new legal immigrants in the US using a nationally representative survey of immigrants admitted to legal permanent residency in 2003. I find that the distribution of remittances is skewed to the right, with a small number of immigrants sending very large amounts. I find evidence against the pure altruism model and find that remittances may be used for investments in the home country. Using longitudinal data from the NIS, I construct a measure of permanent income and estimate remittance-income elasticities. I find that large country differentials in ...
Working Paper Series , Paper WP-08-19



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