Exodus: An economic analysis of the substitutability and complementarity between immigrant and native labor in the United States. A NeoLancasterian approach

Stephen Mully Simonovitch Kaifa, Fordham University

Abstract

The United States has been and continues to be a nation of mass immigration and migration. This movement of labor tends to have a high degree of both occupational and geographic impacts. This dissertation analyzes the U.S. labor market in terms of the impact of inflows of immigrant labor. Using few underlying characteristics education, experience and physical labor of the two labor groups, (native and immigrant labor) in a perfect competitive market model, the effects of immigrants labor on native labor is demonstrated.^ It was assumed that two labor groups, entered a production technology as inputs with each group possessing approximately equal level of education, on the job experience and physical ability. Using a Lancasterian Approach to demand theory and drawing upon the pioneering works of Mincer, Borjas, and Rivera-Batiz and Sechzer, the extent to which immigrants affect employment and earnings of the native labor is analyzed using q - substitution and q - complement approach. The extent of immigrant inflow impact is shown to depend on the elasticity of substitution and complementarity as the model revealed.^ Using a flexible production technology it is shown that the own supply elasticities are negative and the cross supply elasticities are positive. This indicates that immigrants with low levels of education and experience and with similar characteristics as the native labor are substitutes in the labor market and immigrants with higher level of education and experience and with diverse skills are complementary to native labor. The overall impact of immigrant inflow on native labor in the U.S. labor market is positive. ^

Subject Area

Labor economics|Economic theory

Recommended Citation

Kaifa, Stephen Mully Simonovitch, "Exodus: An economic analysis of the substitutability and complementarity between immigrant and native labor in the United States. A NeoLancasterian approach" (1993). ETD Collection for Fordham University. AAI9324618.
http://fordham.bepress.com/dissertations/AAI9324618

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