Labor-Market Competition and Individual Preferences Over Immigration Policy

Labor-Market Competition and Individual Preferences Over Immigration Policy

February 1999 | Kenneth F. Scheve, Matthew J. Slaughter
This paper examines the relationship between individual skill levels and preferences for immigration policy in the United States. The authors use data from the 1992 National Election Studies (NES) survey to analyze how individuals' preferences for immigration policy vary with their skill levels. They test three economic models: the multi-cone Heckscher-Ohlin trade model, the factor-proportions-analysis model, and the area-analysis model. The main findings are: 1. **Less-Skilled Workers' Preferences**: Less-skilled workers are significantly more likely to prefer limiting immigrant inflows into the United States. This preference is robust across different econometric specifications and suggests that individuals believe the U.S. economy absorbs immigrant inflows by changing wages. This finding aligns with the multi-cone Heckscher-Ohlin trade model and the factor-proportions-analysis labor model. 2. **No Evidence of Anti-Immigration in High-Immigration Communities**: There is no evidence that less-skilled workers in high-immigration communities are particularly anti-immigration. Instead, the correlation between skills and preferences appears to be weaker in these communities, which is inconsistent with the area-analysis labor model. The authors also discuss the theoretical and empirical approaches used, the data and model specifications, and the robustness of their findings. They conclude that the economic determinants of individual immigration policy preferences depend on how immigration affects the relative supply of less-skilled workers and, consequently, the wages of native workers.This paper examines the relationship between individual skill levels and preferences for immigration policy in the United States. The authors use data from the 1992 National Election Studies (NES) survey to analyze how individuals' preferences for immigration policy vary with their skill levels. They test three economic models: the multi-cone Heckscher-Ohlin trade model, the factor-proportions-analysis model, and the area-analysis model. The main findings are: 1. **Less-Skilled Workers' Preferences**: Less-skilled workers are significantly more likely to prefer limiting immigrant inflows into the United States. This preference is robust across different econometric specifications and suggests that individuals believe the U.S. economy absorbs immigrant inflows by changing wages. This finding aligns with the multi-cone Heckscher-Ohlin trade model and the factor-proportions-analysis labor model. 2. **No Evidence of Anti-Immigration in High-Immigration Communities**: There is no evidence that less-skilled workers in high-immigration communities are particularly anti-immigration. Instead, the correlation between skills and preferences appears to be weaker in these communities, which is inconsistent with the area-analysis labor model. The authors also discuss the theoretical and empirical approaches used, the data and model specifications, and the robustness of their findings. They conclude that the economic determinants of individual immigration policy preferences depend on how immigration affects the relative supply of less-skilled workers and, consequently, the wages of native workers.
Reach us at info@study.space
[slides] Labor Market Competition and Individual Preferences Over Immigration Policy | StudySpace