The Impact of Immigration on Computer Manufacturing in the 1990s

Abstract

This article examines the impact of immigration on the location of the computer and computer peripherals manufacturing (SIC 357) and electronic equipment manufacturing (SIC 367) industries in the United States. The authors hypothesize that to stay competitive and keep production costs low, the computer and computer peripherals manufacturing and electronic equipment manufacturing businesses that remain in the United States are shifting employment to areas receiving large numbers of immigrants. Using industry and immigration data by metropolitan area, the authors examine the impact of immigration on industry employment change during the 1990 decade. Results show that cities that attracted immigrants experienced slower declines in computer employment than they would have in the absence of immigration.