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Immigrating into a Recession: Evidence from Family Migrants to the U.S

Author

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  • Toman Barsbai
  • Andreas Steinmayr
  • Christoph Winter
Abstract
We analyze how economic conditions at the time of arrival affect the economic integration of family-sponsored migrants in the U.S. Our identification strategy exploits long waiting times for family-sponsored immigration visas that decouple the migration decision from economic conditions at the time of arrival. A one pp higher unemployment rate at arrival decreases annual wage income by four percent in the short run and two percent in the longer run. The loss in wage income is the result of substantial occupational downgrading, lower hourly wages, and a reduction in working hours. Family migrants who immigrate into a recession draw on migrant and family networks to mitigate the negative labor market effects. As a result, they take up occupations with higher concentrations of fellow countrypeople. They are also more likely to reside with family members, potentially reducing their geographical mobility.

Suggested Citation

  • Toman Barsbai & Andreas Steinmayr & Christoph Winter, 2022. "Immigrating into a Recession: Evidence from Family Migrants to the U.S," Working Papers 2022-01, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2022-01
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    Cited by:

    1. Christian Dustmann & Hyejin Ku & Tetyana Surovtseva, 2024. "Real Exchange Rates and the Earnings of Immigrants," The Economic Journal, Royal Economic Society, vol. 134(657), pages 271-294.
    2. García-Suaza, A & Gallego, J. M. & Mayorga, J. D. & Mondragón-Mayo, A. & Sepúlveda, C. & Sarango, A., 2022. "COVID-19 and assimilation: an analysis of immigration from Venezuelan in Colombia," Documentos de Trabajo 20417, Universidad del Rosario.
    3. Schilling, Pia & Stillman, Steven, 2024. "The impact of natives’ attitudes on refugee integration," Labour Economics, Elsevier, vol. 87(C).
    4. Müller, Tobias & Pannatier, Pia & Viarengo, Martina, 2023. "Labor market integration, local conditions and inequalities: Evidence from refugees in Switzerland," World Development, Elsevier, vol. 170(C).
    5. Schilling, Pia & Stillman, Steven, 2021. "The Impact of Natives' Attitudes Towards Immigrants on Their Integration in the Host Country," IZA Discussion Papers 14728, Institute of Labor Economics (IZA).
    6. Gabriele Lucchetti & Alessandro Ruggieri, 2023. "Unlucky migrants: Scarring effect of recessions on the assimilation of the foreign born," Discussion Papers 2023-09, University of Nottingham, GEP.

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    More about this item

    Keywords

    Immigrant integration; family reunification; migrant networks; labor market; business cycle;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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