The Impact of International Migration on Unemployment Rates in Urban America: Testing Different Theoretical Approaches

Abstract

This study examines the influence of international migration on unemployment rates in urban America. For this purpose, this study first applies competition and discrimination and assimilation views in examining whether the size and composition of immigrant populations in American metropolitan areas affect urban unemployment rates. Based on local human capital and labor market views, this study also explores whether urban unemployment rates are affected by local human capital (education) and urban labor markets (employment distributions by class of workers), both of which vary with the size and compositions of local immigrant populations. Using a sample of the 301 Primary Metropolitan Statistical Areas /Metropolitan Statistical Areas (PMSAs/MSAs) in 1990 and 2000, this study employs regression models to test four hypotheses. First, the result supports to some degree competition and discrimination and assimilation views. The empirical findings show that more concentration of international migrants in urban areas, including recent immigrant cohorts, tends to increase urban unemployment rates. Second, the models of local human capital also support that growing college graduates play a role in reducing urban unemployment rates after controlling for the volume of immigrant population. However, there are conflicting impacts of local labor market (employment conditions) on urban unemployment rates.