Abstract
AbstractIn this article, we use data from the American states from 1996 to 2008 to explore the effects of immigration on income inequality. Empirical evidence from both static and dynamic models shows that the foreign-born population has a strong positive effect on state-level income inequality, even when we control for a range of federal and state political and economic contextual variables. We also find that the positive relationship between immigration and state income inequality is driven primarily by low-skill immigrants (rather than high-skill immigrants), and we provide some evidence that high-skill immigrants lower income inequality for some segments of the income distribution. We conclude that immigration—particularly low-skilled immigration—has an important effect on income inequality in the American states.
Highlights
To fill in this gap we consider how immigration and state political environment has combined to influence variation in income inequality across the 50 American states over time
We explore systematically the effects of immigration on income inequality in the American states, all-the-while accounting for the effects of the economic and political factors that help to shape levels of income inequality
DATA AND METHODS We explore the effects of immigration on income inequality by using pooled cross-sectional timeseries (CSTS) data from the American states for the years 1996 to 2008
Summary
To fill in this gap we consider how immigration and state political environment has combined to influence variation in income inequality across the 50 American states over time. We find that both the foreign-born population and low-skill immigrants have positive long-term effects on state-level income inequality. We connect state-level inequality in (post-transfer) disposable family income with four immigration measures: (1) the overall foreign-born population; (2) the inflow of newly admitted legal permanent residents; (3) low-skill immigrants; and (4) high-skill immigrants.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
