Implications of U.S. Immigration Policies for North American Economies
We develop a four-sector (labor-intensive agriculture, capital-intensive agriculture, service & construction, and manufacturing) general-equilibrium model of North American countries to analyze the effects of tighter U.S. immigration policies. Results show that these policies erode the comparati...
Main Authors: | , , |
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Format: | Article |
Language: | English |
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Western Agricultural Economics Association
2020-01-01
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Series: | Journal of Agricultural and Resource Economics |
Subjects: | |
Online Access: | https://ageconsearch.umn.edu/record/298440 |
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author | Stephen Devadoss Xin Zhao Jeff Luckstead |
author_facet | Stephen Devadoss Xin Zhao Jeff Luckstead |
author_sort | Stephen Devadoss |
collection | DOAJ |
description | We develop a four-sector (labor-intensive agriculture, capital-intensive agriculture, service & construction, and manufacturing) general-equilibrium model of North American countries to analyze the effects of tighter U.S. immigration policies. Results show that these policies erode the comparative advantage of U.S. labor-intensive agriculture, causing U.S. production and exports to fall and other countries to expand their exports to the United States. In Mexico, low-skilled labor demand in labor-intensive agriculture increases as production rises. The effectiveness of U.S. tighter immigration policies depends on the substitutability between U.S. domestic and undocumented workers. Immigration policies exacerbate the wedge between Mexican low-skilled wage rate and the undocumented wage rate, intensifying the underlying cause for unauthorized entry. |
first_indexed | 2024-12-21T01:26:31Z |
format | Article |
id | doaj.art-949955792e39419c969bdda8c9a89855 |
institution | Directory Open Access Journal |
issn | 1068-5502 2327-8285 |
language | English |
last_indexed | 2024-12-21T01:26:31Z |
publishDate | 2020-01-01 |
publisher | Western Agricultural Economics Association |
record_format | Article |
series | Journal of Agricultural and Resource Economics |
spelling | doaj.art-949955792e39419c969bdda8c9a898552022-12-21T19:20:30ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852020-01-0145116117810.22004/ag.econ.298440298440Implications of U.S. Immigration Policies for North American EconomiesStephen DevadossXin ZhaoJeff LucksteadWe develop a four-sector (labor-intensive agriculture, capital-intensive agriculture, service & construction, and manufacturing) general-equilibrium model of North American countries to analyze the effects of tighter U.S. immigration policies. Results show that these policies erode the comparative advantage of U.S. labor-intensive agriculture, causing U.S. production and exports to fall and other countries to expand their exports to the United States. In Mexico, low-skilled labor demand in labor-intensive agriculture increases as production rises. The effectiveness of U.S. tighter immigration policies depends on the substitutability between U.S. domestic and undocumented workers. Immigration policies exacerbate the wedge between Mexican low-skilled wage rate and the undocumented wage rate, intensifying the underlying cause for unauthorized entry.https://ageconsearch.umn.edu/record/298440labor-intensive sectorslabor flowtrade |
spellingShingle | Stephen Devadoss Xin Zhao Jeff Luckstead Implications of U.S. Immigration Policies for North American Economies Journal of Agricultural and Resource Economics labor-intensive sectors labor flow trade |
title | Implications of U.S. Immigration Policies for North American Economies |
title_full | Implications of U.S. Immigration Policies for North American Economies |
title_fullStr | Implications of U.S. Immigration Policies for North American Economies |
title_full_unstemmed | Implications of U.S. Immigration Policies for North American Economies |
title_short | Implications of U.S. Immigration Policies for North American Economies |
title_sort | implications of u s immigration policies for north american economies |
topic | labor-intensive sectors labor flow trade |
url | https://ageconsearch.umn.edu/record/298440 |
work_keys_str_mv | AT stephendevadoss implicationsofusimmigrationpoliciesfornorthamericaneconomies AT xinzhao implicationsofusimmigrationpoliciesfornorthamericaneconomies AT jeffluckstead implicationsofusimmigrationpoliciesfornorthamericaneconomies |