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...

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Main Authors: Stephen Devadoss, Xin Zhao, Jeff Luckstead
Format: Article
Language:English
Published: Western Agricultural Economics Association 2020-01-01
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.
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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